What: ZenithOptimedia CEO, Steve King, revealed the latest wave of advertising forecasts at the Festival of Media Global in Rome. According to the report, global advertising spend is expected to grow to 5.5% in 2014 to US $537bn.
Why it matters: Although Television remains the dominant advertising medium , Mobile advertising is growing six times quicker than desktop internet,driven by the rapid adoption of smartphones and tablets. Mobile advertising has become a key factor to boost global advertising spend growth.
Chief Executive of ZenithOptimedia, Steve King (photo), has revealed the latest wave of advertising forecasts for the first time on stage at the Festival of Media Global in Rome. According to King, we are “coming out of recession”, as 2013 figures revealed an industry which was returning to rude health.
King said that Publicis Groupe media network has revised its forecast for 2014 and now expects global Advertising to strengthen over the next three years, with global advertising spend growth forecast to rise from 3.9% in 2013 to 5.5% in 2014 to US $537bn. This growth is then projected to increase to 5.8% in 2015, followed by 6.1% in 2016 as a result of an improvement in the global economy, the spread of programmatic buying, and the rapid rise of mobile advertising.
forecasts per category
- Mobile advertising is now growing six times quicker than desktop internet. Mobile, King said, is estimated to grow by an average of 50% a year between 2013 and 2016, driven by the rapid take-up of smartphones and tablets. By 2016 ,mobile advertising expenditure is expected to rise to US $45.0bn, representing 28.0% of internet expenditure and 7.6% of all expenditure.
- Television remains the dominant advertising medium, attracting 40% of spend in 2013, nearly twice that taken by the internet (21%).Television ad spend is estimated to grow 5.2% in 2014, up from 4.4% in 2013, gaining most benefits of the Winter Olympics, football World Cup and mid-term US elections.
- Internet, which is still the fastest-growing medium by some distance, is estimated to average a 16% annual growth for 2014 to 2016.
- Display, the fastest-growing sub-category, is forecasted to grow at 21% a year to 2016. Traditional display (banners and other standard formats) is growing at 16% a year, increased by programmatic buying. Internet display may overtake paid search for the first time in 2015 and reach an ad spend of US$74.4bn in 2016.
“Advertisers are gaining in confidence as the world economy returns to stable growth. They will find plenty of opportunities to generate strong returns on their advertising investment in the fast-growing digital media, but should remember that television has lost none of its power to reach large and engaged audiences,” King said.