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Carat, the leading global media network, today publishes its first forecast for worldwide advertisingexpenditure in 2016, combined with its latest forecasts for 2015 and actual figures for 2014, with all marketsring-fencing Digital media s
Carat, the leading global media network, today publishes its first forecast for worldwide advertisingexpenditure in 2016, combined with its latest forecasts for 2015 and actual figures for 2014, with all marketsring-fencing Digital media spending, even when faced with negative economic headwinds. Based on data received from 59 markets across the Americas, Asia Pacific and EMEA, Carat’s latest globaladvertising expenditure forecasts show Digital media, with a predicted US$17.1 billion or +15.7% increase inspend in 2015, is outpacing previous Carat predictions from September 2014. Powered by a dramatic rise inMobile ad spending globally of +50% and Online video of +21.1% predicted in 2015, Carat forecasts thatDigital will, for the first time, account for more than a quarter of all advertising spend in 2016 with a marketshare of 25.9%. From a global perspective, Carat forecasts that in 2015 advertising spend across all media will increase byUS$23.8 billion to reach US$540 billion, accounting for a +4.6% year-on-year increase. Market optimismcontinues into 2016 with Carat’s first forecast for the year predicting a year-on-year global advertisinggrowth of +5.0%. In 2014 all regions reported positive growth, from Western Europe at +2.3%, +4.5% in North America, +5.3%for Asia Pacific and high performing Latin America at +11.4%. Regional confidence is predicted to continue in2015 with all key markets forecasting positive growth next year except Russia, due to a struggling advertisingmarket and predicted recession. Western Europe is strengthened by a second consecutive year of positivegrowth driven by strong numbers in the UK and Spain; as well Greece, Ireland, and Portugal returning topositive growth after six consecutive years of ad spend declines. North America continues to grow at a solidpace of +4.5% in 2015 and +4.6% in 2016, with programmatic spending in the US predicted to grow by+137%, reaching spend levels of US$10billion. By media, whilst Digital is the star performer in terms of growth, achieving higher that predicted levels in2014 of +17.4% and accounting for 21.7% of market share, TV will continue to command the majority ofmarket share for the foreseeable future, reaching 42.7% in 2014, and is predicted to grow by more than +3%year-on-year in 2015 and 2016. The steady decline in Print* is expected to continue, however Out-of-Homeis now positioned as the second fastest growth media, behind Digital, with a global market share of spend of7.1%. For the first time, Out-of-Home is predicted to outpace Magazines global share of advertising spend,with Magazines forecast to achieve 6.9% market share in 2015, and with continuing declines for this media,it is predicted to fall behind Radio for the first time in 2016. Commenting on the Carat Advertising Expenditure forecasts, Jerry Buhlmann, CEO of Dentsu Aegis Network,said: “Carat’s latest advertising forecast gives us increased optimism for the outlook for global advertisingspending. With harder times behind us, negative growth markets are pleasingly now a minority, andcollectively we can look ahead to 2016 with positive growth predicted for all key markets. “The strength of Digital continues to dominate discussions and the new distribution of spending. With aquarter of the global population now owning and relying on their smartphones daily, they are our secondbrain in our hands. Mobile dominates the way consumers access information, view content, browseproducts and purchase goods and this is reflected in the innovative services and approach we are discussingwith our clients.
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