Global ad spends to grow by 5 percent in 2014-15 with market optimism demonstrated through strong global and regional forecasts, states Carat, the leading global media network. Based on data received from 59 markets across the Americas, Asia Pacific and EMEA, Carat’s latest forecast shows overall global advertising revenues accelerating by +5.0% in 2014, an increase on the +4.8% predicted in March 2014, and reaffirming positivity for 2015 with year-on-year growth predicted at +5.0%.
Click here for the detailed Carat Advertising Spend Forecast – September 2014.
We have pulled out 10 data points that might help you understand the global advertising spends with focus on India too:
1. The report predicts a +5.0% increase in global advertising spend, driven by a year of events including the FIFA World Cup in Brazil, Sochi Winter Olympics and forthcoming US mid-term elections. The outlook for 2015 continues to be positive, with year-on-year growth also predicted at +5.0%, with all key markets forecast to return to positive growth.
2. By region, growth is driven by strong increases in North America (+4.9%), where the level of advertising spend will exceed the pre-recession peak in 2007 for the first time by the end of this year, and in Western Europe, which will see a return to positive growth (+2.7%) after two consecutive years of declining advertising spend.
3. Digital continues to lead the way with year-on-year growth of +16.1%. The medium will also increase its total share of spend, reaching 20.5% in 2014 and 22.6% next year, as advertisers embrace engagement with new platforms.
4. The steady decline in Print is expected to continue, and although print publishers have successfully cultivated their audiences with their digital platforms and multiple touch points. the combined Newspapers and Magazines share of total spend is still a significant 22% this year.
5. Thanks to the on-going economic recovery and new technological advances in all media, Digital spend will grow faster than all other media, up +16% in US. With the biggest drivers being Mobile at +37% year-on-year growth and Online Video at +40%.
6. UK is having a buoyant year after the FIFA World Cup. Digital media in the UK is predicted to grow by +17.5% in 2014, accounting for over 42% of total spend. Paid Search, which has a 53% share of total digital spend, is forecast to grow year-on-year by +11.4% in 2014 and Display spend (which includes Online Video, Mobile and Social Media) which accounts for 34% of total digital spend, is predicted to grow by 33% in 2014.
7. Digital media spend in China continues to grow at a pace – up +33% in 2014 and +30% in 2015; significantly higher than any other media type. Growth is driven by mobile and programmatic buying. TV still has the highest share of spend at 57% of the total. TV is forecast to have a moderate increase in 2014 (+5.4%) and 2015 (+5.0%).
8. In India due to general elections in Q2 2014, the advertising market is to see a +8.7% year-on-year growth in 2014. Growth is to continue into 2015 at +9.0% as advertisers embrace new technologies within Digital.
9. Digital media spend in India is the third most popular media type behind Newspapers and TV, and it is forecast to grow by +33.2% this year with growth driven by Mobile and programmatic trading.
10. Advertisers are increasingly thinking ‘mobile first.’ Mobile internet access is almost equal to desktop internet usage in India, and the importance of mobile in the coming years will grow.
Overall, Television continues to command the highest share of advertising spend globally +43.2% this year. It has benefited the most from the sporting events – Sochi Winter Olympics and FIFA World Cup this year with a peak in year-on-year growth rates of +4.8%. Newspapers are however seeing a decrease in share by on average 1% point year-on-year, with Newspaper share of spend predicted to fall to 13.5% in 2015.
Digital media spends at 22.6% in 2015 is forecast to overtake Newspaper and Magazines combined share of spend (20.4%). Growth is driven by Mobile, Online Video and Social Media.