Despite worldwide ad expenditure set to grow 4.5% in 2016, the ad growth rate will likely dip to 4.2% next year. That’s according to new research from Warc as part of its Consensus Ad Forecast based on average ad spend predictions across 13 countries.
Adspend predictions for 2017 are lower
This year’s ad spend has been boosted by the presidential election campaign in the US and Brazil’s Summer Olympics. However, given the lack of major events in 2017, ad spend is likely to decline a little.
UK advertising expenditure is looking positive despite Brexit, with ad spend predicted to rise 5.6% this year. In 2017, that’s likely to come down to 4.3%, remaining above global average.
India is predicted to see some of the biggest boost in annual ad spending in 2017 at 13.4%. China is forecast to grow ad spend by 7.1% in 2017, followed by Russia at 6.1% and Brazil (2.1%).
James McDonald, Senior Research Analyst at Warc, explains:
“The latest consensus results present a positive outlook for advertising investment at both a global and local level. All 13 markets studied are expected to record adspend growth in the short term, and this despite their contrasting socio-economic environments.”
Mobile ads will see some of the strongest increase in ad spending this year at 47% and are projected to grow another 34% next year. According to Warc’s predictions, the channel will likely become the third largest ad channel by the end of 2016.
“We have identified a common trend among more mature markets whereby increasing investment in internet – particularly mobile – ad formats is driving headline growth. Applying consensus trends to Warc’s adspend data shows that mobile will grow to be the world’s third-largest ad channel by the end of 2016.”