‘Digital Spend Will Be More Than 25% In 2016’ Predicts Dentsu Aegis
The massive increase in mobile ad spend and online video on a global basis will mean digital spend will increase to more than 25% in 2016, predicts ad agency network, Dentsu Aegis Network.
It’s the first forecast for worldwide advertising expenditure for the Network and combines its latest forecasts for 2015 and actual figures for 2014. The reports has the Network predicting all markets ring-fencing digital media spending, even when faced with negative economic headwinds.
Based on data received from 59 markets across the Americas, Asia Pacific and EMEA, Dentsu Aegis Network’s latest global advertising expenditure forecasts show digital media, with a predicted US$17.1 billion or +15.7% increase in spend in 2015, is outpacing previous predictions from the report in September 2014.
Powered by a dramatic rise in mobile ad spending globally of +50% and online video of +21.1% predicted in 2015, Dentsu Aegis Network forecasts that digital will, for the first time, account for more than a quarter of all advertising spend in 2016 with a market share of 25.9%.
From a global perspective, Dentsu Aegis Network forecasts that in 2015 advertising spend across all media will increase by US$23.8 billion to reach US$540 billion, accounting for a +4.6% year-on-year increase. Market optimism continues into 2016 with Dentsu Aegis Network’s first forecast for the year predicting a year-on-year global advertising growth of +5.0%.
In 2014 all regions reported positive growth, from Western Europe at +2.3%, +4.5% in North America, +5.3% for Asia Pacific and high performing Latin America at +11.4%.
Regional confidence is predicted to continue in 2015 with all key markets forecasting positive growth next year except Russia, due to a struggling advertising market and predicted recession. Western Europe is strengthened by a second consecutive year of positive growth driven by strong numbers in the UK and Spain; as well Greece, Ireland, and Portugal returning to positive growth after six consecutive years of ad spend declines.
North America continues to grow at a solid pace of +4.5% in 2015 and +4.6% in 2016, with programmatic spending in the US predicted to grow by +137%, reaching spend levels of US$10billion.
By media, whilst digital is the star performer in terms of growth, achieving higher that predicted levels in 2014 of +17.4% and accounting for 21.7% of market share, TV will continue to command the majority of market share for the foreseeable future, reaching 42.7% in 2014. It is also predicted to grow by more than +3% year-on-year in 2015 and 2016.
The steady decline in print* is expected to continue, however out-of-home is now positioned as the second fastest growth media, behind digital, with a global market share of spend of 7.1%. For the first time, out-of-home is predicted to outpace magazines global share of advertising spend, with magazines forecast to achieve 6.9% market share in 2015. It is further predicted that with continuing declines for this media, it will fall behind radio for the first time in 2016.
Commenting on the report, Luke Littlefield, CEO of Dentsu Aegis Network ANZ, said: “It is pleasing to see that 2014 was the second consecutive year of growth in ad spend in Australia, consolidating the growth we saw in 2013 and reflecting the cautious but positive consumer and business sentiment in our market. Digital is the world we live in and the economy – within our overall growth forecast of 1% for 2015, we are forecasting strong double growth in digital and a total share of ad spend of around 40%. ”
“The next generation of business will be completely within the digital economy, posing disruption to established businesses and reflecting the fact that from a communications perspective the battleground between traditional and peer-to-peer businesses will be in the convergent media space. As a business, we have a strong focus on providing clients innovative solutions across all platforms, however we will see mobile, video, content and wearable technology further and further embedded into consumers’ lives. ”
Nick Waters CEO Dentsu Aegis Network Asia Pacific said: “A fully convergent and digital advertising landscape is rapidly becoming a reality, with a predicted 20.1% growth in digital advertising spend this year in Asia Pacific – the most of any region globally.
“Asian markets are leading the adoption of internet related platforms and technologies, and this uptake will drive a boom in mobile commerce in the region this year. Online video demonstrates strong growth with more need for original ‘made for digital’ content. Those who understand and are able to support clients in their growing need for convergent communications solutions will benefit this year.”
Please login with linkedin to comment
aussies on facebook Catriona Pollard Diana Palmer guy kawasaki Multi-Screen TV Summit Pat Cummins web securityLatest News
The Mars Agency Announces Latest Findings Of Retail Media Report Card
The Mars Agency has developed a scorecard that assesses the capabilities of leading platforms across key criteria required to optimally plan, execute, and measure effective retail media programs. The scorecard aims To help brands efficiently evaluate their spending options across retail media networks in Australia (and New Zealand). With spending on retail media advertising in […]
‘It’s The Lesser Of Two Evils’ – NRL Eyes US Betting Market As Aussie Regulators Circle
US betting firms will be delighted by the circa 50,000 Americans who could soon watch the NRL on their favourite app.
A-League In Deep Discussions With New Partner To Keep Games On TV After Production Company Enters Administration
The A-League's insatiable appetite for scoring own goals continues.
TV Ratings (27/03/2024): Jungle Members At War Over Concealed Lipstick
A heated argument between two jungle members did the numbers for Ten last night, with I’m A Celeb obtaining a total national reach of 1,282,000. Fans were delighted as Candice Warner and influencer Skye Wheatley got into it over a stick of lipstick, leading Warner to dub the Instagram star “selfish.” Wheatley, best known for […]
Is The Australian Music Industry In Trouble? Inquiry Launched Following Splendour Cancellation
Earlier this week, an inquiry was launched into the challenges and opportunities currently facing the Australian live music industry in the wake of multiple festival cancellations. On 25 March 2024, the Minister for the Arts, the Hon. Tony Burke MP, asked the Committee on Communications and the Arts to inquire into and report on the […]
Liana Dubois, Leandro Perez, Aimee Buchanan & More Gather For Inaugural Compadres Leadership Event
Didn't get the invite? Perhaps you're not as important as you thought.
Cathay Captures The Unforgettable Thrill Of Cathay/HSBC Hong Kong Rugby Sevens, Via Publicis
Nobody does rugby like Hong Kong, apparently. Certainly nobody does it as badly as Australia.
Cocogun Nabs Christine Watts, Kirsty Reynolds & Shev Tan Bolstering Management & Creative Teams
Cocogun bolsters its team with new hires. Committed to purchasing a bigger sofa, too.
The Media Store’s Jacquie Alley & Sam Cousins Take The Plunge With Pro-Bono Work For Cure Cancer
B&T chats with The Media Store bosses about their great pro-bono work and sponsored swim.
Hawke’s Brewing Co. Taps Rocket Comms For PR Agency Following Competitive Pitch
We're expecting Rocket Comms productivity to crash in spectacular fashion following this win.
Spotlight On Sponsors: Patties Serves Up A Taste Of Home For Olympians & South Sydney Rabbitohs Recommit To Gambling Reform
While the Rabbitohs commits to gambling reform, B&T reckons the team should commit to a decent auto sponsor.
Google: “Inevitable” That Bad Actors Will Abuse Ads Platform As Advertiser Account Suspensions Double
Google maintains it's simply impossible for it to entirely stop bad people placing & paying for ads using its service.
Quantcast Expands APAC Sales Team With Appointment Of News Corp Account Manager
No pressure at all when you are appointed as a client success manager.
Publicis Sapient Tests Microsoft-Powered Gen AI Search Tool With Homes & Villas By Marriott Bonvoy
Given Gen AI's record for mangling stuff, B&T cannot see the problem with letting it decide your next holiday digs.
Volkswagen & DDB Group’s “Roo Badge” To Reduce Kangaroo Related Road Collisions
Watch out for RooBadge as Cannes Lions' most debated campaign this year.
Twilio Launches Unified Profiles & Agent Copilot Features To Boost Productivity & Engagement
Agent Copilot sounds like James Bond's less interesting cousin.
Reebok & Honda Among New Clients For onetwo agency
OneTwo finally lives up to its name with this double billing.
Ogilvy Report: Throw Out The Social Strategy Rule Book, The Rules Of The Past No Longer Apply
B&T was puzzled that all 'influencers' aren't, effectively, 'virtual', but here we are.
WhiteGREY & AKQA Merge In Australia, Lee Simpson Departs
Fortunately, the combined agencies aren't opting for a trite portmanteau for the new name.
Splendour In The Grass 2024 Music Festival Cancelled!
Music fans all over the country reportedly relieved they can pack away their rain coats and gumboots for another year.
TV Ratings (26/03/2024): “Fairy Bread, F***ing Disgusting”: Gordon Ramsay Slams Aussie Food In Food Stars Launch
Ramsay not one for mincing his words, even when it comes to minced meat pies.
Paramount+ International Boss Doubles Down On Aussie Content, Says Ad-Tier will Grow Audiences And Revenue
Good news as Paramount will not be binning I’m A Celebrity for re-runs of Frasier.
Brent Smart: Telstra Pushing For 50-50 Brand-Performance Split But Warns Numbers ‘Won’t Look Great’ Initially
The old brand vs performance debate continues. But here, Brent is firmly sitting on the fence.
Crowded House, Tones And I & Dom Dolla Win Big At The Shure Rolling Stone Music Awards
B&T staffer reports back with humdinger of a hangover & feeling seriously uncool after mixing with music types.
Opinion: Dyslexia “A Hidden Gem” For Brands & Agencies
Dyslexics offer underappreciated benefits in the corporate field, according to this op-ed.
David Jones Taps Criteo To Power Online Retail Media Arm
Want to see ads for things you probably can't afford? David Jones has got you covered with new retail media play.
oOh!media Sets Up Team To Target Business Audiences Across Airports & Offices
oOh! wants brands to harass you every minute of your next business trip.
QMS Launches Australian First DOOH & TV Partnership With Samba TV
Samba TV, of course, is not a channel dedicated to dancing. Much to our dismany.
Slew Of New Hires At Amplify
Four new faces join the Amplify offices. Team say desk scarcity becoming "acute".
Adobe Announces Content Authenticity Initiative Expansions To Counter Deep Fakes
Try as they might to enlighten them, we suspect Trump supporters will continue to watch and believe Fox News.
The PR Group Appoints TechCrunch Senior Reporter Catherine Shu As Director Of Content & Media
Catherine Shu makes the bold leap from journalism to PR. Says inevitable pay bump was "unrelated".
HERO Nabs Ebony Santin From AMPR
Rumours Santin cleared out the stationery cupboard before departing are as yet unconfirmed.
Karena Noble Checks Out Of EVT Hotels & Resorts To Launch Comms Consultancy
Noble still managed to squeezed in a continental breakfast before departing.
Canva Acquires Design Platform Affinity To Bring Professional Design Tools To Every Organisation
Canva & Adobe face off continues. We're not picking sides but keenly aware that Canva's office is next door to ours.
“Lean On Our Team To Help You Find An Audience”: Why Understanding Audience Engagement Is Essential In Journalism
Engaging the audience is critical to journos, apparently. We'd thought self-loathing & alcoholism were key.
Adobe Summit: Major Gen AI Developments, Data Concessions & Partnerships
What happens in Vegas stays there. Unless it's the Adobe Summit and then you get to read about in B&T.