Global ad spend will continue to grow in the next couple of years, but at a slower rate than previously expected, according to analysts.
Media agency ZenithOptimedia measures worldwide ad sales and says that across all media , there will be 4.4% growth, taking the total to US$544 billion, in 2015. That will accelerate to 5.3% growth in 2016 with the summer Olympics and US presidential elections boosting the numbers.
Although still in positive territory, the projections are lower than those previously issued by ZenithOptimedia and its 2017 forecasts is for slower growth, of 4.8%.
It said the deepening recession in Russia, Ukraine and Belarus, and a slowdown in growth in China were to blame for its downward projection.
By category, television continues to command the lion’s share (39%) of ad spend and will continue to do so and grow year-on-year, but online and online video are fast-growing categories.
“Online video combines the emotional connection of television with the efficient targeting and measurable effectiveness of digital display,” said Steve King, ZenithOptimedia’s CEO, Worldwide. “While television will remain dominant for many years to come, advertisers are increasingly utilising online video as an invaluable complement, giving them new opportunities to communicate brand values to consumers,”
In terms of the rankings of top ten countries by ad revenue, the US, China and Japan will retain the top three slots by 2017. The UK will replace Germany in fourth. France and Argentina also drop down the rankings and Canada drops out of the top ten.