2017 will be a year where advertisers need to do more with less, says GroupM

WPP’s GroupM has shared its revised outlook for 2017 and said the year will be one of modest growth in advertising as brands continue to be pressured for performance in low-growth environments.Despite the overhang of uncertainty tied to outcomes of the US Presidential election and the UK referendum on departing the European Union, advertising budgets have not yet been impacted, said the group.  China and other “new world” countries continue to over-contribute to global growth, but a new normal more modest level of growth has settled in. Digital advertising continues to be the chief beneficiary of growth.GroupM’s Futures director, Adam Smith said ad growth has shadowed the global economy's long, low and level recovery cycle since 2010. These new forecasts emphasise the ad story of our times is however structural, not cyclical.2017 advertising is predicted at US$547 billion ( increase of 4.4%), with digital’s share to reach 33%. In 2016, digital captured US$0.72 of every new ad dollar, and TV was $0.21. In 2017, digital will capture US$0.77 per new dollar, TV will get US$0.17."Twenty years on from the internet becoming a measured ad medium, digital remains the engine of advertising growth and disruptor-in-chief of the entire marketing economy,” said Smith. “This multiplies options, opportunities and risk. The importance to advertisers of autonomy and diligence has never been higher.”The US and China account for half of all net growth in the 2016 and 2017, with China taking back a narrow lead over the US. China China and other "new world" countries continue to over-contribute to global growth, but a new normal more modest level of growth has settled in. Digital advertising continues to be the chief beneficiary of growth. GroupM predicts the  media spending will grow 7.9% and next year’s at 7.8% year-on- year. While television ratings may have stabilised due to the "One Drama, up to Two PSTVs” policy, average radio ratings as well as daily listening hours are falling among all age groups. Thus, radio advertising to fall 7.8% in 2016 and 8.3% in 2017.However, as a large population in China uses Internet,  the investment on this platform is expected to grow will grow 29.5% in 2016 and 21.5% for next year.IndiaIndia remains, by far, the fastest growing market in the world's ten, US$10billion plus ad markets. Growth is forecast at 13.8% in 2016 and 12.5% in 2017, with an economy fueled by low interest rates, sustained urban demand and the impact of key reforms.Free-to-air channels continue to emerge in India along with print media. Digital too is expected to witness higher viewabilty with mobile and video ads the main drivers of growth. Content consumption is also expected grow enormously with the implementation of 4G networks in the country.US and United KingdomGroupM's total market growth forecast for US in 2016 from 3.1% to 3.2%. This reflects an upward revision for TV projection from 3.4% to 4.1%, matching the rate recorded in the preceding election years of 2012 and 2014. This year’s election spending may be a little less robust, but this is compensated by good advertiser demand for the summer Olympics and by the redirection of advertising funds from digital to TV.The UK contributes US$1.5 billion of net growth next year, despite the surprise Brexit referendum result and the announcement that the departure process will start in the first quarter of 2017. Elsewhere in the BRICS, GroupM sees that Brazil is emerging from recession , after reaping Olympics benefits.  There is increased digital adoption, particularly in mobile; since the beginning of the year mobile users grew 22% to reach 74 mm. Modest ad growth of 2% in 2017 is predicted, enough to keep Brazil the world's number-five ad economy ( USA , China , Japan , UK, Brazil , Germany ).