Carat has published an optimistic outlook for advertising expenditure this year and next with a prediction that spend will grow by 4 per cent this year to hit $529bn and a further 4.7 per cent in 2016.
Underpinned by growth in mobile and online video spend the forecast foresees continued growth in the clout of digital media, whose share of advertising spend is expected to increase from 24.3 per cent in 2015 to hit 26.5 per cent in 2016.
Indeed digital is now the principal medium in terms of spend in 10 markets; including the UK.
Growth figures in Western Europe of 2.6 in 2015 is powered by a strong performance in the UK and Spain which will notch up expansions of 6.4 and 6.9 per cent, easily enough to alleviate a hefty 12 per cent contraction in Greece.
Asia Pacific also remains strong despite the Chinese slowdown with growth of 4.1 per cent, just behind North America on 4.2 per cent although well behind Latin America’s 12.7 per cent growth.
Jerry Buhlmann, CEO of Dentsu Aegis Network, commented: “Digital media continues to achieve outstanding growth as the effectiveness of this medium and results achieved, especially with millennials, warrants the upsurge in spend levels. As Digital rapidly evolves into a more established asset and Programmatic and Search bring stronger performance and efficiency, we continue to add value to our clients by delivering innovative solutions that are different and better.”
Digital is expected to grow by 15.7 per cent in 2015; followed by Cinema at 4.7 per cent, TV 3 per cent Radio at 1.3per cent and Outdoor at 3.4 per cent.