Carat Ad Spend Report September 2016

19/09/2016

CARAT FORECASTS POSITIVE MOMENTUM IN GLOBAL ADVERTISING SPEND IN 2016 +4.4%, WITH CONTINUED GROWTH +4.0% IN 2017.

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Carat’s latest global advertising expenditure forecasts, covering 59 markets across the Americas, Asia Pacific and EMEA, show advertising spend remains healthy in 2016, increasing globally by US$23 billion in 2016 to hit US$548.2 billion, a +4.4% year-on-year increase compared to 2015. 

In particular, growth in 2016 is driven by robust performance in the US (+5.0%) and continued recovery in the C&EE region (+4.7%), countering slightly more moderate growth in the UK and Spain, as well as lower forecasts in China and Brazil.

The advertising market is set to continue the positive momentum in 2017 with steady +4.0% year-on-year increase forecast, to hit US$570.4 billion globally. Digital is once again the key driver and established star performer of 2017. Growing by +13.6%, Digital will contribute to US$20.1 billion spend increase next year, representing more than 90% of the total incremental media spend offset by declines in Print.  

The UK continues to be the number one ranking advertising market in Western Europe and the fourth globally. While figures have been slightly revised down after the EU referendum, the forecasts continue to highlight solid growth of +5.4% in 2016 and +4.6% in 2017. Growth in the UK is primarily driven by the continued rise of Digital, accounting for 53.6% share of spend in 2016 and set to maintain pace in 2017, with +11.5% increase. Other insights on the UK advertising market include:

  • Online Video, growing at +44.9% in 2016 and +36.4% in 2017, is one of the most significant drivers in Digital and overall growth in the market, as brands consistently focus on content distributed and curated through online channels.
  • Social Media spend is expected to grow by +32.7% in 2016 and +21.9% in 2017. In particular, Facebook continues to grow faster than almost every other media supplier and is set to become the third largest media platform in 2017 behind Google and ITV.
  • Paid Search continues to generate growth, predicted at +10.6% in 2016 and +8.4% in 2017, particularly through Mobile, providing a wealth of more targeted and relevant data.
  • TV advertising spend in the UK is forecast to grow by +3.6% in 2016 as the UEFA EURO 2016 football championship generated growth and higher viewership in the first half of the year. Whilst this appears to moderate in the second half of the year, TV has overall delivered positive performance in 2016.

To learn more about our latest advertising spend forecast, read the full report here.

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