Ad spend around the globe is set to grow a healthy 4.6 per cent to $US579 billion this year according to global research agency ZenithOptimedia.
The report says 2016 is looking particularly optimistic on the back of the Rio Olympics, UEFA soccer in Europe and the US Presidential elections. Improving economic conditions in Europe and emerging markets opening themselves up to international brands will also have a positive affect, the report says.
The internet will be the biggest driver of ad spend with predictions it will grow at three times the global average of 2015 to just shy of 16 per cent. Social media is predicted to grow a whopping 32 per cent, online video by 22.4 per cent and paid search 15.7 per cent.
“Rapid growth from countries that are relatively new to the international advertising market, combined with a resurgence of established markets that were damaged by the financial crisis, will keep the global ad market on track for healthy growth for at least the next few years,” said Jonathan Barnard, head of forecasting at ZenithOptimedia.
However, the report said there was still some cause for concern. A downturn in China, recessions in Russia and Brazil and the instability in the Middle East would also play out. However, it was an improving Europe that would have the most positive affect.
Many European nations are only now recovering from 2008’s GFC. As an example, European countries that were hardest hit – Ireland, Spain and Portugal – had ad spends almost halved in recent times. However, may are now seeing annual growth spends improve as much as 8-9 per cent YOY.
However, it was the emerging markets that ZenithOptimedia predicted could see as much as 15 per cent growth YOY. The report identified these markets in particular to be stand outs: Algeria, Angola, Bangladesh, Bolivia, Cambodia, Cameroon, Cote d’Ivoire, Dominican Republic, Ethiopia, Gabon, Ghana, Guatemala, Iran, Jamaica, Kenya, Laos, Mongolia, Morocco, Mozambique, Myanmar, Namibia, Paraguay, Senegal, Sri Lanka, Tajikistan, Tanzania, Trinidad and Tobago, Tunisia, Uganda and Zambia.