TV advertising revenues are forecast to grow by +12.3 per cent in 2016, supported by strong spending from e-commerce companies and FMCG brands.
According to Jerry Buhlmann, CEO, Dentsu Aegis Network, the strength of digital continue to be the dominant element in the growth of global advertising expenditure whilst TV spend remains as the foundations of the industry.
“As advertising becomes more data driven and complex, its crucial to move rapidly to navigate and meet the needs of the digital economy and this is reflected in the innovative capabilities and approach we provide to our clients,” expressed Buhlmann.
While TV is expected to remain dominant for many years to come, advertisers are increasingly utilising Online Video as an invaluable complement. However, share of total Digital advertising spend in India is still relatively low at 8.9 per cent (2016).
Unlike in other markets, positive Newspaper advertising spend growth is expected to continue in India at +10.5 per cent in 2016, primarily due to investment from e-commerce, Automotive and a small contribution from Government spending. Retail advertisers also continue to spend on Print.
Carat’s first forecasts for 2017 predict continuing strong growth for the advertising market in India with an estimated increase of +13.9 per cent and expected favourable economic conditions in which advertisers vie for consumers’ attention.
Based on data received from 59 markets across the Americas, Asia Pacific and EMEA, Carat’s latest global forecasts highlights that advertising spend will reach US$538 billion in 2016, accounting for a +4.5 per cent year-on-year increase.
Fuelled by high-interest media events taking place during the year– including the US presidential elections, Rio 2016 Olympics and Paralympics and the UEFA EURO 2016 championship – the positive outlook for 2016 is predicted to continue into 2017, with Carat’s forecast highlighting a consistently strong year-on-year global advertising growth of +4.5 per cent.
Carat’s latest forecasts reconfirm the rise of Digital as the established driver of global advertising spend growth. Powered by the upsurge of Mobile (+37.9 per cent), Online Video (+34.7 per cent) and Social Media (+29.8 per cent) in 2016, the strength of Digital is expected to continue to grow at double digit prediction levels of +15.0 per cent this year, and a further +13.6 per cent in 2017.
Overall, Carat predicts the upsurge of Digital to account for 27.0 per cent of advertising spend in 2016 and extend significantly to 29.3 per cent in 2017, reaching US$161 billion globally.