Carat’s latest global advertising expenditure revenue is expected to increase by 4.8% in 2014, 4.5% higher than the forecast in Carat’s previous advertising spend report last September.
Carat also predicts a 5% year on year leap in global advertising expenditure from 2015.
Check out the full release below for further details.
Carat Predicts Bright 2014 and Positive Growth of 5.0% in 2015
Digital is the only media predicted to increase market share in 2014
Carat, the leading global media network, today publishes its first forecast for worldwide advertising expenditure in 2015, combined with its latest forecasts for 2014 and actual figures for 2013.
Based on data received from 59 markets across Americas, Asia Pacific and EMEA, Carat’s latest global advertising expenditure forecast show global advertising revenues accelerating by +4.8% in 2014 to US$551 billioni. This is an upward revision on the +4.5% forecast in the previous Carat Advertising Spend report issued in September 2013 and a notable increase in pace on the actual +3.3% growth in 2013. Carat predicts that global advertising expenditure in 2015 will continue on an upward trend, with +5.0% year-on-year growth.
From a regional perspective, an increase in advertising expenditure is forecast across all regions, including Western Europe which has suffered two years of negative decline. Carat’s data highlights that the era of double digit decline in some parts of Western Europe may now be over, with markets including Italy, declining by -10.3% in 2013, transforming into a positive growth market by 2015.
By media, Digital spend continues to increase at a rapid global growth rate of +15.5% in 2014, outperforming all other media and the only media to extend its market share based on 2014 and 2015 predictions. In the UK, Denmark, Netherlands, Norway and Sweden, Digital media is already the number one media type.
Commenting on the Carat Advertising Expenditure forecasts, Jerry Buhlmann, CEO of Dentsu Aegis Network, said: “Carat’s predictions echo the increasingly positive economic sentiment we are hearing from our industry-leading clients and partners. We are seeing overall economic growth but with significant regional and local variations. With 2014 looking brighter than we previously anticipated, and further momentum gathering in 2015, the outlook for advertising expenditure is healthy for most.
“The real story of the advertising market is the dynamics in digital media. Digital growth accounts for three times total growth and the seismic trends within digital are causing a convergent media revolution. Social, mobile and video will all grow by at least 50% in 2014 through developments in powerful technology, access to information and increasing consumer trust. Whilst the prolific sporting events including the Winter Olympics in Sochi and the World Cup in Brazil will continue to drive TV advertising spend in 2014, the gold medal winners will ultimately be the digital world.”
Simon Ryan (pictured), Carat’s CEO Australia & New Zealand said: “It is pleasing to see such positive predictions for growth in media worldwide, and it is certainly something that we are experiencing first hand at Carat in Australia and New Zealand. These predictions highlight the importance of media in our economy and its ability to drive real business benefit to our clients in a media convergent world. The significant growth of digital continues to provide us with great channels through which to deliver better strategies and results for our clients.”