Global Adspend Set to Rise 4.4% In 2016 Driven by Mobile Formats - MARKETING Magazine Asia


Global Adspend Set to Rise 4.4% In 2016 Driven by Mobile Formats

warc

warc(Marketingmagazine.com.my) – Warc, the marketing intelligence service, expects global advertising spend to rise 4.4% to $561bn this year, following estimated growth of 3.1% in 2015. However, the rate of expansion is set to slow to +3.7% in 2017.

Increasing investment in mobile formats is set to underpin growth. Warc calculates that $90bn will be spent on mobile-specific ads worldwide in 2017, or 44% of all online ad investment. The increasing allocation of marketing budgets to mobile formats such as search ($40bn in 2017), social ($28bn) and video ($10bn) mirrors the media consumption trends of the modern consumer.

The findings are released as part of Warc’s Global Adspend Outlook, a free summary of ad investment trends drawn from actual advertising expenditure across 93 markets, collected via an annual survey of monitoring organisations and ad industry bodies, and combined with broader GDP and consumer spend forecasts from the OECD and IMF.

Warc research analyst James McDonald said of the findings: “Despite an air of economic uncertainty, consumer spending will rise globally both this year and next, and with it the level of advertising investment aimed at influencing the flow.

“Further, the allocation of marketing budgets is seen to be mirroring consumer trends, particularly the rise in internet access via mobile devices and the increasing use of mobile video, social and search platforms.

“While this digital trend evolves, TV spot, an industry staple, will see record levels of investment this year as brands vie to secure ad space during major events such as the Summer Olympics and Euro 2016 football tournament.”

MOBILE ADSPEND DOUBLES AS DESKTOP STAGNATES
The report finds that global advertising spend on desktop internet has stagnated at around $112bn, and is likely to decline from this year onwards. Instead it will be mobile formats which drive growth in online advertising investment in the coming years. The forecast $90bn spend on mobile advertisements worldwide in 2017 is a near doubling from the estimated $48bn spent in 2015.

THE OLYMPIC EFFECT
Advertising revenues are to receive a boost this year due to the US presidential campaigns and the Summer Olympic and Paralympic Games.

The US, the world’s largest ad market by spend, is expected to account for a third of global adspend growth this year due to increasing ad buys around these events. The US ad market will be worth a record $175bn this year after annual growth of 4.9% – a growth rate not seen since the last time these two major events coincided in 2012.

Much of this growth is driven by television. On a gross measure (excluding US media channels which saw an annual fall in ad investment), TV accounts for an average of 33% of annual growth during years in which these two events coincide. Warc forecasts and additional $3bn will be spent to secure TV ad space in the US this year, pushing the annual total for the medium to a record $66.5bn.

REGIONAL PROSPECTS
Net adspend growth will be recorded for all regions this year and next, though the prospects within each vary considerably.

Asia-Pacific will record the fastest rate of adspend growth, rising 6.2% this year and a further 5.6% in 2017, by which time $167bn will be spent to on advertising across the region.

Despite concerns about the health of its economy, much of this regional growth will come from the world’s second-largest ad market, China. Previous research by Warc has found that 80% of the value of China’s ad market has been generated over the last decade.

 

appiesmalaysiasignoffEnter the prestigious APPIES Malaysia Marketing Awards today!

Known as the ‘TED for Marketing’, campaign entries are presented by their brand marketers or campaign creators in an interactive format comprising of a 4-minute creative reel summarising the overall marketing campaign, followed by a 6-minute oral presentation highlighting significant aspects of the campaign, and finally a Q&A with the audience.

Entrant campaigns must have run between 1 January 2015 and 29 February 2016 in any of these categories:

1. Consumer Durables

2. Consumer Services

3. Food and Beverage

4. Non-food FMCG

5. Business Services

6. Government, Cultural, Social and Environmental campaigns.

Top brands including P&G, Mondelez International, Coca-Cola, Google, IKEA, IBM,
Unilever, Amazon, Shangri-La Hotels & Resorts and Asia Pacific Breweries have
all won at the APPIES over the years. Will your Brand or Agency be next?

Download details and your Entry Kit here: 

Closing Date: 31 March, 2016

All entries are to be submitted to [email protected] via file transfer protocol.

APPIESMALAYSIA2016Full

 

 


MARKETING Magazine is not responsible for the content of external sites.



Subscribe to our Telegram channel for the latest updates in the marketing and advertising scene