New research by Publicis-owned media agency Zenith has identified a number of emerging advertising markets that it predicts will collectively overtake ad spend in Australia by 2020.
According to Zenith, Iran will add more ad dollars than any of the other country included in the agency’s Thirty Rising Media Markets report, grow by US$713 million between 2017 and 2020 to reach US$2.1 billion.
The 30 countries included in the report are: Algeria, Angola, Bangladesh, Bolivia, Cambodia, Cameroon, the Ivory Coast, Cyprus, the Dominican Republic, Ethiopia, Gabon, Ghana, Guatemala, Iran, Jamaica, Kenya, Mongolia, Morocco, Mozambique, Myanmar, Namibia, Paraguay, Senegal, Sri Lanka, Tanzania, Togo, Trinidad and Tobago, Tunisia, Uganda, and Zambia.
The second-biggest growth in ad spend will come from Bangladesh, which Zenith predicts will grow by US$457 million between 2017 and 2020, reaching US$1.3 billion.
Advertising expenditure in the 30 identified markets totalled US$9.7 billion in 2017 – up 12.7 per cent compared to 2016, while the global ad market as a whole grew by 4 per cent.
Over the next three years, Zenith expects the emerging markets to grow at an average rate of 12.4 per cent – three times faster than the world average growth rate of 4.1 per cent.
By 2020, Zenith forecasts they will generate a total of US$13.8 billion in advertising expenditure, having grown by US$4.1 billion since 2017, and 29 per cent of this growth will come from Iran and Bangladesh.
In percentage terms, the fastest-growing of the 30 markets are in Africa and south Asia, according to the report. Zenith forecasts 19 per cent average annual growth in Angola, 18 per cent growth in Myanmar and Ethiopia, and 15 per cent growth in Tanzania, Bangladesh, Ghana, and Iran.
Zenith’s global brand president, Vittorio Bonori, said: “These thirty rising ad markets may be small now, but they are rapidly becoming richer with fast-growing demand for consumer goods.
“They have great potential for brand growth for early entrants, which have the opportunity to establish their brands with relatively little competition.
Jonathan Barnard, head of horecasting and director of global intelligence at Zenith, said: “While the global ad market remains stuck at 4 per cent annual growth, these markets are growing dynamically.
“They are becoming too big to ignore – by 2020 they will collectively overtake the ad spend in Australia, the world’s seventh largest ad market.”