Forecast Shows Global Advertising Increase, But Internet Ad Spend Decline

Forecast Shows Global Advertising Increase, But Internet Ad Spend Decline
SHARE
THIS



Digital marketing business WARC has made its forecast for 2019, predicting a 4.3 per cent increase in global advertising spending, but with an Internet ad spend decrease of 7.2 per cent.

The forecast, based on data from 96 countries, predicts that the global advertising spend will balloon to US $616 billion.

This follows on from a 5.4 per cent rise in 2018 — the strongest growth since 2011 — according to WARC’s latest Global Ad Trends report, published yesterday.

Despite healthy top line growth, the research suggests that total internet adspend — inclusive of desktop, mobile and tablet — will decline by 7.2 per cent this year beyond the Google and Facebook ‘duopoly’.

Conversely, ad income for the two online giants is expected to rise 22 per cent to US $176.4 billion, equating to a combined share of 61.4 per cent of the online ad market (up from 56.4 per cent in 2018).

WARC data editor and author of the research James McDonald observed: “While advertising investment is stable at the top line level – maintaining a 0.7 per cent share of global GDP since 2011 — the market’s undercurrents have changed dramatically in recent years.

“The amount of ad money available to online publishers beyond Google and Facebook is now in decline, and the repercussions are potentially far-reaching, with several high-profile announcements of job cuts seen among online publishers already this year.

“Print publishers have already been severely hit by the migration of ad dollars online, and while traditional media excluding print have fared admirably to date, their collective take of ad investment is also trending downwards”.

Internet is the driving force in global advertising growth, with spend expected to rise 12.1 per cent to US $287.4 billion worldwide this year.

This would give internet a 46.7 per cent share of media spend globally, but in the US — the world’s largest ad market — internet is expected to account for over half (54.0 per cent) of all media spend for the first time this year.

This prediction also falls in line with the forecast made by research firm eMarketer.

Within internet, mobile adspend is expected to rise 21.9 per cent to reach US $165.7 billion in 2019, placing it as the second-largest ad channel worldwide across 96 markets.

Across WARC’s 12 key markets, however — Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Russia, UK, US — mobile is predicted to overtake TV to become the largest ad channel this year.

Please login with linkedin to comment

Digital Advertising global advertising Warc

Latest News

Crater Teams Up With Director Luna Laure For ‘Harry’s Story’, Canteen’s Newest Campaign
  • Campaigns

Crater Teams Up With Director Luna Laure For ‘Harry’s Story’, Canteen’s Newest Campaign

Canteen’s latest campaign features the combined talents of Director Luna Laure and creative agency Crater. The campaign strives to raise awareness for young people affected by cancer. The awareness campaign centres around Harry Barentson, who at 12 years of age found out his pregnant mum had cancer. While his mother fortunately survived, he lost his […]

AFL Legend Kevin Sheedy Narrates ‘A Love Letter To Victoria’ Via Enthral Partners
  • Campaigns

AFL Legend Kevin Sheedy Narrates ‘A Love Letter To Victoria’ Via Enthral Partners

In partnership with storytelling agency Enthral, AFL star Kevin Sheedy has voiced a video ‘Love Letter to Victoria’ using visuals to showcase the state’s natural beauty and culture. Victoria has been hit with the worst of the coronavirus pandemic compared with any other Aussie state experiencing four lockdowns. Sheedy has partnered with Ethral to share […]

Telstra’s Belong Appoints Howatson + White For Strategy & Creative, Retains OMD For Media
  • Advertising

Telstra’s Belong Appoints Howatson + White For Strategy & Creative, Retains OMD For Media

Telstra’s lower-cost telco, Belong, has awarded its strategy and creative account to Howatson + White, and has reappointed OMD to its media buying account, after a competitive pitch process. Howatson + White will handle strategy, planning, creative and CRM, while former agency Clemenger will continue to have a relationship with Belong, managing PR and retail activation. […]

Coke Releases New Campaign, ‘Turn Up Your Break’, Via Ogilvy
  • Advertising
  • Campaigns

Coke Releases New Campaign, ‘Turn Up Your Break’, Via Ogilvy

Coca-Cola Australia has rolled out its new campaign ‘Turn Up Your Break’. The campaign will be led by a TVC that encourages people to truly pause with a Coke on their break so they can walk away feeling refreshed and uplifted. The TVC features two busy chefs stepping outside for a break, the bustling kitchen […]

Nova 91.9’s Ben And Liam Locked Up In Rundle Mall To Raise Awareness For Mental Health
  • Marketing
  • Media

Nova 91.9’s Ben And Liam Locked Up In Rundle Mall To Raise Awareness For Mental Health

Nova 919’s Ben & Liam breakfast show announced that they’ll be throwing their support behind and raising awareness for a cause very close to their hearts, mental health. On Monday 21 June Ben Harvey and Liam Stapleton will be locked in a purpose-built glass structure, in the middle of Rundle Mall, for an entire week […]

iHeartPodcast Network Australia And The New York Times Agree Podcast Ad Sales Deal
  • Advertising
  • Media

iHeartPodcast Network Australia And The New York Times Agree Podcast Ad Sales Deal

ARN and The New York Times have reached an agreement for ARN to become the advertising sales representative for The New York Times’s podcast portfolio in Australia. The deal will enable Australian brands to connect with Australian listeners to The New York Times’s most popular podcasts, such as The Daily, Serial and This American Life, […]

Verizon Media Academy Ends For 2021 With Youth Charity Pitch-Off
  • Advertising
  • Media

Verizon Media Academy Ends For 2021 With Youth Charity Pitch-Off

Verizon Media’s talent program has come to an end for the third year, closing with a hybrid pitch-off event for Musicians Making A Difference (MMAD). The Verizon Media Academy class of 2021, made up of 44 emerging leaders from across Australia and New Zealand media, advertising and marketing industry, were given just one hour to […]