Dentsu Aegis Forecasts Improved Ad Spend Outlook For The Coming Year

Dentsu Aegis Forecasts Improved Ad Spend Outlook For The Coming Year

Dentsu Aegis Network’s latest Ad Spend Forecasts, based on data received from 59 markets, puts global growth at 3.6 per cent in 2018, up from 3.1 per cent in 2017.

Asia Pacific ad spend growth is forecast to accelerate to +4.2 per cent in 2018, up from +3.5 per cent  in 2017. The region is forecast to be the leading contributor to global ad spend growth in 2018, contributing 39.7 per cent, US$8.1 billion of the total US$20.3 billion incremental global increase, led by markets China, Japan, India and the Philippines (see table below).

Events will play an important role in 2018, Winter Olympics, Commonwealth Games, Asian games and state elections are all expected to stimulate ad spend growth. However, a slowing of growth in markets like Australia and China can be attributed to multiple contributing factors such as a naturally maturing market, ad fraud and data accuracy issues on top of a general economic slowdown.

Within this context, digital media channels continue to disrupt ad spend in 2018:

  • Digital media channels will continue to power ad spend growth, growing globally by 12.6 per cent in 2018, versus 15 per cent in 2017, to reach US$220.3 billion
  • Mobile will go from strength to strength, reaching US$121.1 billion having overtaken desktop as a share of total digital spend in 2017. Desktop will continue to lose global share (-1.5 per cent since 2016), versus mobile’s gains (8.2 per cent since 2016)
  • Digital overtakes TV, by a margin now exceeding previous forecasts. Digital ad spend will account for 38.3 per cent share of total ad spend, TV 35.5 per cent.
  • Paid search accounts for the lion’s share (40 per cent) of digital ad spend, with voice-activated devices helping to power its growth. Amazon’s Alexa app was the top app for Android and iPhone on Christmas Day 2017, with the company claiming its devices enjoyed the best holiday season yet.
  • Video (24.5 per cent) and social (23.5 per cent) will also drive growth within digital ad spend, powered by smartphone take-up and mobile-video in particular
  • Programmatic spend will rise by 23 per cent as established players and startups compete over ad tech

Commenting on the latest forecasts, Jerry Buhlmann, CEO of Dentsu Aegis Network, said: “The latest ad spend forecasts show a market in transformation, but not recession. The challenge for brands is to navigate an uneven economic outlook alongside a rapidly evolving tech & innovation landscape. In many markets, disruptive innovation – from mobile, voice activation and new ad tech players – is still providing new sources of growth and we forecast this trend will continue into 2018.

“Succeeding in this environment requires global consistency through appropriate platforms and systems, while also the flexibility and agility to work with a wider ecosystem of tech-enabled solutions. It demands a relentless focus on understanding the consumer, using data to reach real people, driving relevance, addressability and business growth.”

Nick Waters, CEO of Dentsu Aegis Network Asia Pacific, added:“Asia Pacific continues to lead the growth in digital ad spend. With the region’s fast adoption of technology and innovation, there will be a substantial shift towards mobile and smart devices. As a result, mobile online video ads will be the main drivers of growth within digital ad spend across the region.

“Data continues to be central to our business in Asia Pacific and with better understanding of new technologies, structures and models for business growth, agencies must help brands move from being disrupted to disruptor.”




Please login with linkedin to comment

Dentsu Aegis

Latest News

Avenue C Nabs Paula Lopes From KINESSO
  • Marketing

Avenue C Nabs Paula Lopes From KINESSO

Leading independent media agency, Avenue C, is thrilled to announce the appointment of Paula Lopes as Digital Director. Paula, a seasoned professional with over 17 years experience in the media industry, joins Avenue C from her role as Chief Operations Manager of KINESSO (merger of Reprise, Matterkind, and Kinesso specialities).

oOh!Media Fuses People & Performance At National Annual Revenue & Growth Conference
  • Advertising

oOh!Media Fuses People & Performance At National Annual Revenue & Growth Conference

oOh!media brought together more than 260 of its sales, operations, commercial, marketing, finance and leadership teams last week for its national annual revenue and growth conference. Held over two days at the picturesque Rydges Resort in Hunter Valley, the event ‘Fusing people and performance’ focussed on how to build a high-performance mindset and how it […]

Free TV Welcomes Government’s Prominence & Anti-Siphoning Framework
  • Media

Free TV Welcomes Government’s Prominence & Anti-Siphoning Framework

Free TV has welcomed the federal government’s ongoing commitment to ensuring that all Australians can access their local free television services on connected TVs through the introduction of legislation to implement a prominence framework in coming days. Free TV CEO Bridget Fair (lead image) said: “Right now, Australian viewers are being steered in the direction […]

Tyreright Appoints 27 Degrees Media
  • Marketing

Tyreright Appoints 27 Degrees Media

New-generation media agency 27 Degrees Media has been appointed to manage digital media for national tyre retailer Tyreright in one of its first Australian client signings. Lead Image: Loan Morris – 27 Degrees Media CEO Under the partnership, 27 Degrees Media will be responsible for all digital media strategy, planning and buying, along with influencer […]

farsiight Unveils New Market Positioning Putting Growth for Good Over Growth At All Costs
  • Marketing

farsiight Unveils New Market Positioning Putting Growth for Good Over Growth At All Costs

Brisbane performance agency farsiight has announced the launch of its new market positioning, Growth for Good, in response to a changing business landscape, marking a departure from a “growth at all costs” mentality that has defined the industry in recent years. Agency founders and brother duo, Josh and Ben Somerville, envision Growth for Good as […]

By Land Or By Sea: GoTransit Offers Options Galore For Transit Advertisers In Newcastle
  • Advertising

By Land Or By Sea: GoTransit Offers Options Galore For Transit Advertisers In Newcastle

Australia’s largest privately owned transit media supplier, GoTransit Media Group, now offers unprecedented options for transit advertising in Newcastle – on both land and sea following their successful tender to supply interior advertising inside the popular Stockton Ferries. The national transit media company is already well acquainted with the thriving NSW market, having successfully operated […]

‘People First Bank’ Heritage & People’s Choice Bank Unified
  • Marketing

‘People First Bank’ Heritage & People’s Choice Bank Unified

Heritage and People’s Choice have launched People First Bank, the new name for positive change in banking Australia’s largest customer-owned bank has unveiled its new brand, announcing that Heritage and People’s Choice will be unified under the new name of People First Bank. Chairman Michael Cameron said the highly anticipated new brand offered a compelling […]

L’Oréal Aus & NZ Partner With Great Barrier Reef Foundation, Announcing Large Investments
  • Marketing

L’Oréal Aus & NZ Partner With Great Barrier Reef Foundation, Announcing Large Investments

L’Oréal Groupe Australia and New Zealand have announced one of the largest investments to the Great Barrier Reef Foundation to pioneer new coral restoration efforts in the region. L’Oréal Groupe Australia and New Zealand have announced today a new partnership with the Great Barrier Reef Foundation (GBRF), to help coral reefs withstand the devastating impacts […]

Media.Monks Names Matthew Godfrey EVP, Head Of Content In APAC
  • Marketing

Media.Monks Names Matthew Godfrey EVP, Head Of Content In APAC

Effective immediately, S4Capital’s operating brand Media.Monks, a digital-first marketing and advertising services company, has appointed Matthew Godfrey to lead its APAC Content practice. With over 15 years of experience leading innovative businesses in the Asia-Pacific region, Godfrey will support a best-in-class senior leadership team across the region as EVP, head of content, APAC. He joins […]