NEWS21 December 2015

Global adspend set to double in 2016

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US — Advertising expenditure is forecast to rise by 4.4% next year, following growth of 2.2% this year, according to a new report from Warc.

This is based on forecasts for 12 major markets: Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Russia, UK and US.

India ( 13%) and China ( 6.9%) are expected to have the strongest annual adspend increases in 2016, though both are susceptible to high levels of inflation. The UK is expected to have the third highest growth, at 5.7%, followed by Brazil ( 5.4%) and US ( 4.9%).

The internet is forecast to become the largest medium for advertising in 2016 (it is already the biggest platform in half of the 12 markets). Internet adspend rose by 17.4% this year and is expected to grow by 12.2% next year, while TV spend dropped by 2.5% this year. TV spend is forecast to grow by 2.9% next year.

“The stimuli of major sporting and political events underpin our 4.4% growth forecast for global adspend next year. Digital growth is expected to remain in the double-digits, and ad tech is evolving rapidly,” said James McDonald, data analyst at Warc.

“Programmatic trading is becoming commonplace, galvanising spend on so called traditional media such as outdoor, radio and indeed TV. More is being spent to engage with the ‘always on’ consumer, and this has led to internet becoming the largest ad medium among our 12 major markets.”