Global Advertising To Reach $548.2 Billion This Year
Drawing on data from 59 markets around the world, global media network Carat forecasts global advertising spending in 2016 to reach $548.2 billion, a year-over-year increase of 4.4 percent. Carat expects growth, driven by the digital advertising sector, to continue into 2017. The network attributes some of 2016’s growth to high-interest media events like European football’s UEFA Euro Championship, the Rio 2016 Olympics and Paralympics, and the U.S. presidential election.
The U.S. market is expected to grow five percent in 2016, according to Carat’s findings, as will North America as a whole. Advertising forecasts for Latin America, Asia-Pacific and Western Europe are also respectable, with expected growth of 10 percent, 3.9 percent and 2.9 percent, respectively, in 2016.
In 2017, global advertising is expected to reach $570.4 billion, a four percent year-on-year increase. Carat attributes this surge to growth in digital, which is expected to grow 15.6 percent in 2016 and a further 13.6 percent in 2017. Driven by the high demand of mobile, online video and social media, digital media spending is expected to capture 27.7 percent of total global media spend in 2016, increasing to a predicted 30.2 percent in 2017.
TV holds the highest share of total media spending in 2016 at 41.1 percent, but moderate growth of 2.3 percent in 2017 will leave it a lower predicted share of spend a year from now at 40.3 percent. Print advertising spend is forecast to continue to decline by 5.5 percent in 2016 and 4.3 percent next year. Excluding print, Carat forecasts year-on-year growth for all other media in 2016.
Carat’s full report is available here.