Global advertising expenditure has recorded its largest upgrade in seven years on the back of rapidly rising confidence and booming online spend, which is expected to exceed 40% of global adspend this year.
Zenith’s latest advertising expenditure forecast scotches suggestions that advertisers are turning their back on online amid transparency fears by predicting that the share of online spend will actually increase from 37.6% in 2017 to 40.2% in 2018.
This is attributed to advertisers embrace of technology, data and innovation to build stronger relationships with consumers.
Vittorio Bonori, Zenith’s global brand president, said: “We are observing sustained ROI from digital transformation. And we are now at the forefront of a transformation as brands shift budgets along the consumer journey, benefit from powerful algorithms and advanced machine learning techniques, and invest in new e-commerce solutions. This transformation is at the heart of driving brand growth.”
A twin growth driver of mounting confidence has also played its part in boosting forecast global ad spend, which is now expected to rise by 4.6% this year, a substantial 0.5% increase on the rate of growth predicted as recently as December and the largest upgrade in global ad spend forecasts for seven years.
This growth is expected to moderate somewhat over following years however with predictions for 2019 and 2020 coming in at 4.4% and 4.3% respectively.
The internet is set to grow in importance, accounting for 94% of global ad spend growth between 2017 and 2020.