Advertising spend remains healthy in 2016, increasing globally by $23 billion in 2016 to hit the US $ 548.2 billion, a +4.4% year-on-year increase compared to 2015.
The key insight from CARAT’s latest ad spend report:
- It’s clear that the growth in global advertising spends predicted in 2016 of +4.4%, supported by major media events, including US presidential elections, the Rio 2016 Olympics and Paralympics, and the UEFA EURO 2016 football championship.
- The total advertising spends globally is expected to hit $548.2 billion in 2016.
- The USA has the highest share of spend markets globally (37%), followed by China (14.9%), then Japan (10.3%) and UK (4.8%).
- Digital has the highest incremental spend as it will contribute to $20.1 billion spend increase in 2017, representing more than 90% of the total incremental media spend offset by declines in Print.
- North America is expected to generate US$213.3 billion, 38.9% of total global advertising expenditure in 2016.
- Digital spend growth of +16.7% in 2016 continues its upward trajectory with Video (+50%), Mobile (+49%) and Social Media (+45%) leading the way.
- Digital spending is expected to hit $56.8 billion in 2016, 27.8% share of total US ad expenditure, predicted to increase to 30.5% in 2017.
- In Western Europe, Markets such as UK (+5.4%), Ireland (+7.5%), Sweden (+6.4%), Spain (+5.0%) are showing the highest growth predictions.
- Advertising expenditure in Western Europe is expected to reach US$94.4 billion in 2016, representing a 17.2% share of global ad spend and increasing by +2.7% in 2017.
- In the Middle East and North Africa region, the growth of markets is forecast to increase by +1.2% in 2016 and +2.0% in 2017.
- Egyptian market is expected to increase by +2.4% in 2016 and +3.0% in 2017.
- UAE, the second largest advertising market in the region, is forecast to show a limited +0.1% increase in 2016 and +0.4% in 2017, while in KSA, forecasts are declining to -1.4% in 2016 and -1.2% in 2017.