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Reading: Carat Forecasts Continued Positive Momentum With +5.4% Growth In Australia
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B&T > Media > Carat Forecasts Continued Positive Momentum With +5.4% Growth In Australia
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Carat Forecasts Continued Positive Momentum With +5.4% Growth In Australia

Staff Writers
Published on: 9th September 2016 at 10:15 AM
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Carat has today publishes its updated forecasts for worldwide advertising expenditure, showing a positive outlook for the global advertising market in 2016, set to continue in 2017 powered by the ongoing growth of Digital*.

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, accounting for a +4.4 per cent year-on-year growth. The healthy outlook is fueled by a buoyant 2016, marked by high-interest media events including the UEFA EURO championship, the Rio 2016 Olympics and Paralympics, as well as the upcoming US presidential elections.

In 2016, Carat reports a positive outlook for most regions with particularly robust growth in North America (+5.0 per cent) and strong recovery in Russia (+6.2 per cent), countering lower expectations in some markets. Despite a slight decline due to volatility in some markets, the positive momentum of the global advertising spend is expected to continue into 2017 reaching US$570.4 billion, a +4.0 per cent year-on-year growth, led by the ongoing upsurge of Digital media. As the leading media type in 13 of the markets analysed.

The Australian advertising market in 2016 is expected to generate significant growth of +5.4 per cent, building on the strength of Digital, which continues to generate strong double-digit year-on-year increase. Other key drivers of growth include a 12-week lead-up campaign to the Federal elections held in July 2016, as well as the Rio 2016 Olympics and Paralympics, collectively accounting for an estimated US$110 million spend this year. 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, also facilitated by the return of the Liberal Coalition to power which is expected to bring positive business conditions.

Commenting on the Carat advertising expenditure forecasts, Simon Ryan, CEO Carat Australia and CEO, Dentsu Aegis Network Australia:

“Carat’s latest Australian advertising spend forecasts show continued confidence in the market with positive growth as businesses continue to see results from strategic media investment. With Australia being an advanced digital economy we are seeing momentum in mobile, online search and video all leading the rapid growth in digital investment. With Digital and media convergence leading brands, they can build deeper engagements and gain a superior understanding of their audience and activations through data-led media solutions”.

*Digital: ‘Digital Advertising’ or ‘Digital Media’ or ‘Digital’ includes advertising spend from Search, Display, Online Video, Social Media and Mobile.

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Staff Writers represent B&T's team of award-winning reporters. Here, you'll find articles crafted with industry experience spanning over 50 years. Our team of specialists brings together a wealth of knowledge and a commitment to delivering insightful, topical, and breaking news. With a deep understanding of advertising and media, our Staff Writers are dedicated to providing industry-leading analysis and reporting, both shaping the conversation and setting the benchmark for excellence.

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