A Snapshot of the World's Ad Spend
Recent data from Carat highlights which countries and channels are leading the global ad spend in 2016.
Global advertising spend is projected to reach $548.2 billion by the end of this year—a 4.4% (or $23 billion) increase compared to 2015, according to a recent report by Carat. The global media network expects this figure to rise to $570.4 billion (a 4% year-on-year increase) in 2017.
For its September 2016 ad spend report, Carat analyzed 59 international markets across the Americas, Asia Pacific, Europe, Middle East, and Africa. It partially attributes the increase in global ad spend to “high-interest” international media events, such as the 2016 UEFA EURO championship, as well as the Olympics and Paralympics.
When looking at general regions, Latin America is expected to experience the highest yoy growth this year at 10% (considering current prices). North America comes in second at 5% expected growth followed by Central and Eastern Europe (4.7%), Asia Pacific (3.9%), and Western Europe (2.9%).
In terms of which market is expected to account for the largest share of ad spend overall, the United States slides into first place at 37.3%--with Carat noting that the U.S. presidential election is forecasted to generate $7.5 billion in incremental spend. China is next on the list at 14.9%, followed by Japan (10.3%), the U.K. (4.8%), and Germany (3.1%).
Television is the most prominent advertising channel this year. It's expected to account for a 41.1% share of global advertising spend by the end of 2016. Digital is the second most popular at 27.7% with newspapers (11%), out of home (6.9%), magazines (6.4%), radio (6.4%), and cinema (0.6%) bringing up the rear.
But in terms of which channel's ad spend experienced the most yoy growth, digital takes the cake. Carat anticipates that digital ad spend will surge 15.6% this year—a significant increase compared to cinema (4.5%), out of home (3.5%), television (3%), or radio (2.4%). Actually, this year newspapers and magazines experienced a 7.1% and 2.5% decrease in ad spend, respectively. In fact, digital is expected to experience 13.6% yoy ad spend growth in 2017 (totaling $168.2 billion) while TV is anticipated to experience only 2.3% yoy ad spend growth.
When breaking down the digital category across all devices, paid search is expected to account for the highest share of ad spend this year at 12.5%. Carat anticipates that this figure will jump to 13.4% in 2017. Display advertising is expected to make up 8.1% by the end of 2016, and mobile is expected to account for 7.6%. Online video and social media are forecasted to steal 3.6% and 1.5% of this year's ad spend share, respectively.
While it might not receive the biggest slice of the ad spend pie today, mobile is experiencing the most growth among digital channels. In fact, Carat expects mobile to experience 48.8% yoy ad spend growth in 2016. Online video follows closely behind at 41.3%. These two forms of digital media continue to be front runners in 2017—with mobile ad spend expected to increase by 38.9% and online video ad spend predicted to rise by 32.8%.
As for comparing specific countries, Carat forecasts Argentina to take the lead this year at 40.9% advertising market growth. The media network anticipates India to come in second by the end of the year at 12%, followed by Vietnam (10.6%), the Philippines (9.9%), and the Czech Republic (9%).
Note: Statistics shown in U.S. dollars.