Global media agency Carat has released its predictions for what’s going to happen in the ad market next year, with Australia predicting an increase 2.4 per cent to reach $13.6 billion.
The forecast previously was pinned at just 1 per cent, however with economic conditions in Australia showing improvement, Carat rearranged the numbers from its March release to now 2.4 per cent in September.
Commenting locally on the Carat Advertising Expenditure forecast, Simon Ryan, CEO Carat Aus & NZ, said: “For the Australian Market, it is encouraging to see a return to positive growth this year with a 2.4 per cent increase to reach AUD $13.6billion and a further expansion in 2016 at +2.8 per cent.
“There is a clear and absolute focus that digital media is driving growth as its share of total advertising spends continues to inflate year on year and digital is now the leading media in Australia. Digital display is the rising star driven substantially by online video, programmatic and mobile. With cross-device measurement tools becoming more sophisticated and access to premium content increasingly available, greater investments from linear TV budgets are being allocated to digital screens.
“We are experiencing a significant change in market sentiment and consumer confidence which started in the first 8 months of 2015 and is expected to be in play well into 2016. This will be further accelerated by spending on elections for Federal Government, Australian Capital Territory and Northern Territory and the Rio Olympic Games in August 2016.
“Significant and major new product launches led by leading advertising categories including Automotive, Retail, Banking and Telecommunications will also see continued growth in the Australian advertising market in 2016, all driving growth of around est. 2.8 per cent on annual spend.”
When it comes to the global media spends and where brands are putting their money, Carat predicts declines in newspapers and magazines (on trend from its prediction this time last year), with rises in all other markets, at the current prices.
Predictably digital had the biggest forecast, with 2016 predicted to see an increase of 14.3 per cent.
Looking at the global percentage share of advertising spend, television continues to dominate around the world with a 41.3 per cent predicted share, and digital seeing the second highest with 26.5 per cent.