Global Ad Trends report released
Warc, the marketing intelligence service, has released its latest Global Ad Trends report, offering an analysis of the data recorded in Warc’s survey of global advertising expenditure, to reveal the underlying global advertising and media investment trends and provide an outlook for the future.
Warc’s survey of adspend has run annually since 1980 and involves input from partners in 96 reporting markets.
Key findings of Warc’s research between 2006-2015
- The strengthening of the US dollar removed $44.8bn from the value of the global ad market in 2015.
- The opposite was true for the euro ad trade; €37.3bn of global growth was superficial due to the currency’s devaluation.
- Inflation-adjusted Purchasing Power Parity (PPPs) show that in 2015, the value of global ad transactions finally reached parity with the peak preceding the global financial crisis – an eight-year recovery.
- The value of the US ad market remained unchanged in the decade between 2006 and 2015. The value of China’s market grew 3.5 times during this period.
- Hong Kong spends the most per capita on advertising (US$782.33). The USA follows (US$523.74) with Australia in third (US$467.18).
- The US$155bn spent securing ad space online in 2015 was 3.5 times greater than a decade earlier, equating to a Compound Annual Growth Rate (CAGR) of 18.1%
- Of the internet spend, almost two-thirds (30.7%) was for mobile ads, up from a share of just 1% from 2006.
- TV was still the largest ad medium by spend in 2015 – at US$195bn – though a strong dollar removed US$17.8bn from global TV ad revenues.
- TV’s share of global adspend has fallen each year between 2012 and 2015, with the 1.6 percentage point loss in 2015 representing the largest decline on record.
- Only eight of the 96 markets monitored recorded growth in magazine ad revenue in 2015.
Reviewing the Global roundup for 2016 and outlook for 2017, Warc estimates
- Global adspend rose 5.2% in 2016, and anticipates growth of 3.6% in 2017.
- Eight of Warc’s 12 key markets (which account for two-thirds of global adspend) are expected to witness a slowdown in adspend growth next year.
- Worldwide internet adspend is expected to rise 12.5% in 2017, compared to a 1.9% decline for TV.
- Mobile is thought to have become the largest ad platform in China this year (2016) – the first of the 96 monitored markets to witness this.
- Mobile is set to become the second-largest ad channel in the US next year, with some US$40bn expected to be spent reaching consumers on their phones.
- Approximately one in four pounds spent on UK advertising today goes to search providers.
For additional information on Warc’s latest Global Ad Trends study, please visit www.warc.com