Digital advertising spend to achieve 20% market share by 2014 according to Carat ad spend forecast
Digital advertising is likely to command a +20 per cent share of overall global advertising spend in 2014 according to the first forecasts for advertising expenditure in 2014 from independent media communications agency Carat.
Digital advertising, already the leading advertising medium in the UK, the Netherlands and Sweden, is set to increase its global advertising spend share by approximately +2 per cent year-on-year.
The forecast also predicts further positive momentum for advertising expenditure in 2014 based on data from 57 markets around the world. Compared with the latest for 2013 forecast of +3.7 per cent 2014 expenditure is set to increase by +5.0 per cent.
All markets and regions are expected to experience positive growth in 2014, including Western Europe which, is expected to return to growth following two years of decline. Both multi-platform opportunities and increases in digital spend are contributing factors to the growth.
“Carat’s latest advertising forecast gives us increased optimism for the outlook for global advertising spends, particularly for 2014. For some markets the journey will remain challenging as the economic trend of two-speed world continues, with lower growth in Western Europe and North America and higher growth in the faster-growing regions of Asia Pacific and Latin America,” said Jerry Buhlmann, chief executive of Aegis Group plc.
Growth in advertising spend, from a global perspective, continues to be led by two of the original BRIC economies of Russia and Brazil who are predicted to continue delivering double digit growth in 2014. Both countries are also set to benefit from major sporting events hosting the Winter Olympic Games and the FIFA World Cup respectively.
Buhlmann added: “As expected, the trend of audiences moving online continues and with digital advertising comes greater accountability. So while television remains the dominant medium it is clear that the advertising businesses which can innovate and implement truly cross-platform converged communication plans, combining online and offline campaigns will be the most successful and deliver the best results for clients. Evolving and challenging, the advertising industry is never anything but exciting.”