Global advertising spend will grow by 4.9 per cent to reach $545bn (£350bn) next year as the world’s economy continues to improve, according to the Advertising Expenditure Forecast from ZenithOptimedia.
The Publicis-owned media agency has predicted that in comparison with a year that saw both the World Cup, the US mid-term elections and the Winter Olympics, advertising spend growth will dip slightly on 2014’s 5.1 per cent.
Mobile advertising will be the main driver of advertising spend growth, forecast to account for over half (51 per cent) of all new spend between 2014 and 2017, growing at an average of 38 per cent each year. This will be facilitated by the ongoing growth in the number of devices being released and innovation within ad tech and continued improvement in under experience.
Despite that growth, mobile advertising spend it likely to only account for 6.2 per cent of all spend in the US with digital display singled out as one key driver.
The adoption of programmatic buying has also led to an estimated 26 per cent growth in traditional digital display, which is expected to continue to emerge further with technological evolution.
The weakness in both the Japanese economy and the Eurozone has held back advertising spend globally, with Japan’s ad market annual growth at between 2-3 per cent, which is not expected to improve in the next few years, the forecast has claimed.
Steve King, chief executive of ZenithOptimedia Worldwide, commented: “Mobile technology is creating new opportunities for brands to build relationships with consumers, while programmatic buying is making brand communication cheaper and more effective. Social media provides a strong example of how to advertise effectively on mobile platforms, and we expect mobile marketing to develop further as other media learn from this example.”
2016 is expected to facilitate an increased spend of 5.6 per cent as a result of the UEFA European Football tournament, as well as the Summer Olympics and the US Presidential Elections, while the Eurozone is expected to grow by 0.8 per cent this year, as opposed to the 2.9 per cent decline experienced last year.