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Ad spend looks to rise in 2017

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Global media network Carat, said that ad spend is looking good in 2016, and 2017 is set to look positive as well due to the ongoing growth of digital.Based on data received from 59 markets across APAC, America and EMEA the forecasts showed that advertising spend will reach US$548.2 billion in 2016, accounting for a 4.4% year-on-year growth. The healthy outlook is fueled by a buoyant 2016, marked by high-interest media events including the UEFA Euro championship, the Rio 2016 Olympics and Paralympics, as well as the upcoming US presidential elections.In Asia Pacific, the buoyant Indian advertising market continues to lead growth prospects of 12.0% in 2016 and 13.9% in 2017. Conversely, more moderate growth remain in China where advertising spend is expected to increase by 5.7% in 2016 and 5.5% in 2017, as the market adjusts to a ‘new normal’ economic landscape.“The Asia Pacific advertising market looks set to achieve 3.9% growth in 2016, accelerating to 4.2% in 2017.  Within the headline figures there is a wide variety of performance across the region and sectors. China, the world’s second largest advertising market, will grow at 5.7% this year, moderating slightly to 5.5% next year but still the world’s fastest growing large market by some margin," said Nick Waters, CEO, Dentsu Aegis Network Asia Pacific.He added that the strong double digit growth can be expected in India, whilst the Philippines and Vietnam will also deliver double digit growth Thailand, Hong Kong and South Korea are expected to be relatively flat.Despite a slight decline due to volatility in some markets, the positive momentum of the global advertising spend is expected to continue into 2017 reaching US$570.4 billion, a 4% year-on-year growth, led by the ongoing upsurge of digital media. As the leading media type in 13 of the markets analysed, digital continues to grow at double-digit prediction levels of 15.6% in 2016, accelerating further at 13.6% in 2017.Driven by the high demand of mobile, online video and social media, digital media spend is expected to reach 27.7% share of total global media spend in 2016, increasing to a predicted 30.2% in 2017. Whilst television continues to hold the highest share of total media spend of 41.1% in 2016 - boosted by high-interest media events - it is expected to grow at a more moderate rate of 2.3% in 2017 with a lower predicted share of spend at 40.3%.In line with expectations, print advertising spend is forecast to continue to decline by 5.5% in 2016 and by 4.3% next year. Excluding print, Carat’s forecasts reconfirm year-on-year growth for all other media in 2016, highlighting year-on-year positive growth in cinema (4.5%), radio (2.4%) and OOH (3.5%).It also reported a positive outlook for most regions with particularly robust growth in North America (5%) and strong recovery in Russia (+6.2), countering lower expectations in some markets. The US continues to show positive market confidence with forecasts revised up to +5.0 as the US presidential elections alone are expected to generate US$7.5 billion of incremental spend.Despite a slight moderation following the EU referendum, the UK continued to be the largest advertising market in Western Europe, with positive growth of 5.4% expected in 2016, exceeding the average rate of 2.9% in the region. Advertising forecasts are also set to remain strong in Latin America and Asia Pacific, with 10% and 3.9% growth respectively in 2016, in spite of Brazil’s lower expectations and China’s adjustments to its ‘new normal’ economic landscape. 

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