Dynamic Media Landscape


$548.2bn. Yes, $548.2bn that is the amount that the World’s Advertisers will spend on selling their wares to us in 2016, which if I do say so myself, is a rather large amount of money. In line with the recent Bellwether report, it is probably worth mentioning that this total has been boosted by several high profile events that have taken place this year such as: the Presidential elections (Interestingly, Hilary Clinton is estimated to have spent $104m trying to convince the populous to vote for her, whilst Donald Trump has spent a meagre $12.4m); The UEFA Euro Championships; and the amazing Rio 2016 Olympic and Paralympic Games. Of course there are always events where advertisers seize the chance to be associated with, be a part of, or just plain have the opportunity to pop their ads in front of the people (a lot of people) who are likely to be in the market to buy their products.

Daniel Ward Daniel Ward Client Director Leeds Global Ad Spend

Just to put that amount of money into context, Google is worth about $552bn and Apple $628bn (according to Google Finance at the time of writing). However, despite some rather volatile markets it looks like growth will continue into 2017, with a global ad spend of $570.4bn.

What’s interesting for me, is the continued success of television advertising. Although advertising on the box may not be the largest single media channel in many countries (that accolade goes to Digital!), it is still taking over 40% of the advertising revenue. This just goes to show the power of Television advertising and the fact it quite simply works! Not many econometricians would argue that fact either. Thinkbox research shows for every £1 spend on Television, advertising will generate £1.79 in profit, the highest profit ROI of any medium. I’m sure ITV would also approve of this ROI when they tell us about their latest piece of research, which tells us that family viewing time together is increasing rather than decreasing (even with the proliferation of mobile, tablet and the old fashioned viewing on laptops), given that  ITV have the programmes which generate this shared viewing experience. Even me and my two boys watch X-Factor together, not particularly because I enjoy it, but because they do and it’s an experience shared.

However these two young kids show us the way in which the world is going, even if they don’t know it. Listening to that irritating voice of Stampy Longnose or Squid describing what they are doing whilst playing Minecraft, being viewed through YouTube makes a lot of sense to a 6 year old. That 6 year old I speak of, has used an iPad since he was younger than 2 years old and know what he wants and exactly how to get it.

So, the next step within Television advertising has got to be an Algorithm which knows what you want and how to give you it. I have no doubt about the power of channel brands and programme brands, however, I can’t help but think that when Facebook decide to get involved in the world of ‘programme distribution’ this will change. In fact it could change the whole way the television business is financed and plenty of people have opinions on how that may or may not be, but whatever happens there will be change.

This will then lead to the continued flying of Digital media channels – it looks like 2017 will be another fantastic year for digital as globally we believe Digital will account for over 30p in every £1 spent on advertising that’s another double digit YOY growth. It’s not just digital growing, in fact almost every other media channel grasps the available tech and understands the importance of branding – OOH and radio are great examples. The only media channel looking at decline in spend next year is print advertising, which is looking at a decline of just of 4%. Globally Newspapers are still in third place in terms of actual spend (behind Television and Digital).

It’s clear to see that the media ecosystem is ever evolving, and it seems that 2017 is going to be an interesting year indeed.


Daniel Ward Daniel Ward Client Director Leeds Global Ad Spend
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