Major global events boost adspend forecasts

12 Jan 2018  |  Newsline Staff 
Major global events boost adspend forecasts

Global adspend figures are forecast to grow 3.6% in 2018, up from 3.1% in 2017, according to the latest market data from Dentsu Aegis Network.

The forecasts, based on data from 59 markets, show how major global events will play an key role in the overall growth, with the Winter Olympics and Paralympics, the football World Cup and the US Congressional elections all expected to boost adspend.

However, at a country level, the picture is mixed. For example, while adspend in the US, Germany and India will grow faster in 2018 versus 2017, there are signs of a slowdown in the UK, Russia and China.

The UK's downgrade is blamed on Brexit uncertainty and reduced household spending.

The report states that digital media channels will continue to power adspend growth, growing globally by 12.6% in 2018, versus 15% in 2017, to reach US$220.3 billion.

It also shows mobile advertising going from strength to strength, reaching US$121.1 billion having overtaken desktop as a share of total digital spend in 2017. Desktop will continue to lose global share (-1.5% since 2016), versus mobile’s gains (8.2% since 2016).

Video (24.5%) and social (23.5%) will also drive growth within digital adspend, powered by smartphone take-up and mobile-video in particular.

“The latest adspend forecasts show a market in transformation, but not recession," said Jerry Buhlmann, CEO of Dentsu Aegis Network.

"The challenge for brands is to navigate an uneven economic outlook alongside a rapidly evolving tech and innovation landscape. In many markets, disruptive innovation - from mobile, voice activation and new ad tech players - is still providing new sources of growth and we forecast this trend will continue into 2018."

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03 Aug 2018 

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