Digital media spend is forecast to climb to US$168.2 billion in 2017, representing 30 per cent of total global media expenditure, according to the Carat Ad Spend Report released this month.
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Prepared by global media agency Carat, the report notes digital continues to grow at double-digit levels of 15.6 per cent in 2016 and is forecast to grow by 13.6 per cent in 2017. Driven by the high demand of mobile, online video and social media, digital media spend is expected to reach 27.7 per cent share of total global media spend in 2016, increasing to a predicted 30.2 per cent in 2017.
Mobile continues to show the highest spend growth across all media in 2016, with a year-on-year estimated increase of 48.8 per cent in 2016, outpacing predictions of 37.9 per cent in Carat’s March 2016 report.
Based on data received from 59 markets across the Americas, Asia Pacific and EMEA, Carat’s latest global forecasts show that advertising spend will reach US$548.2 billion in 2016, up 4.4 per cent on a year-on-year basis. Global advertising spend is expected to continue into 2017 reaching US$570.4 billion, rising another 4 per cent year-on-year, led by the ongoing upsurge of digital media.
Digital is the leading media type in 13 out of the 59 markets analysed in 2016, including Australia, Canada, Denmark, Estonia, France, Hong Kong, Hungary, Ireland, Netherlands, New Zealand, Norway, Sweden and UK.
“Expanding over three times faster than the global rate, digital reaffirms itself as the unrivalled driver of growth. As the digital economy brings complexity, speed of change and disruption, it is only through digital that brands can build engagement and remain relevant to their audiences on a fully addressable and real times basis,” said Jerry Buhlmann, CEO Dentsu Aegis Network.
Australia in focus
Within the Australian market, digital will increase 16.5 per cent, boosting the overall Australian advertising market which is expected to grow 5.4 per cent in 2016.
Total digital spend in Australia is forecast to reach 50.5 per cent of share in 2017, following strong year-on-year strong of 12.4 per cent. Paid search continues to command the highest share of digital (45.1 per cent in 2016) although digital display (including video and social) is gaining ground with year-on-year growth forecast of 20.0 per cent in 2016 and 18.0 per cent in 2017.
The 12 weeks leading up the the federal election in July as well as the Rio Olympics and Paralympics accounted for collectively accounting for an estimated US$110 million spend this year, the report said.
Despite the absence of major media events in 2017, the positive outlook for Australia is predicted to continue next year at a healthy pace of 4.5 per cent.