GroupM Reveals Global Ad Forecasts, Predicts Sluggish Ride For Australia

GroupM Reveals Global Ad Forecasts, Predicts Sluggish Ride For Australia

The world’s biggest media agency buying group, GroupM, has today unveiled its global ad forecast report that predicts ad spends will remain soft for the coming 12 months.

The report, titled This Year Next Year, analyses the prospects of the 57 global markets that GroupM plays in.

GroupM’s global president of business intelligence, Brian Wieser, has predicted a deceleration in advertising growth this year versus 2018 (+5.7 per cent vs. +4.8 per cent) and in 2020 versus 2019 (+4.8 per cent vs. +3.9 per cent).

When it came to Australia, the report predicted ad spend would grow modestly in 2020 (up two per cent), however, it would improve over the 2021-2024 period. Up 3.2 per cent in 2021, up 3.4 per cent in 2022, up 3.6 per cent in 2023 and rising to 3.5 per cent in 2024.

When it came to the Australian market the report noted: “Australia’s trends will likely differ, as we see at the present time with that country’s economy soft and facing a real risk of recession for the first time in decades. The Australian ad market was likely only stable in 2019 versus 2018 and probably grows only slightly in 2020, for a two per cent gain expected next year.”

Other notable points from the report included:

  • Digital companies around the world like Alibaba, Alphabet, Amazon, Booking.com, eBay, Facebook, IAC, JD.com, Netflix and Uber account for $US36 billion in spending, accounting for a majority of the world’s growth in spending on advertising.
  • Estimates for digital advertising are about $US230 billion in 2019. Google and Facebook are likely to generate somewhere around $175 billion on a net basis, while other large sellers of digital advertising—including Microsoft, Amazon, Verizon, Twitter and Snap – will generate approximately $US25–30 billion in digital ad revenue this year.
  • The US and UK are helping to raise global averages, as the US accounts for nearly 40 per cent of the world’s total with a still-robust ad market, and the UK still growing at a remarkably fast pace (up +44 per cent since 2013).
  • China is still more than two times the size of the third largest market, Japan, but macroeconomic concerns contribute to growth predictions of only +3.7 per cent in 2019 and 1.4 per cent in 2020.
  • Additional key drivers in the advertising industry are the India and Brazil and, while Germany will remain the fifth largest market by 2024, France is set to be overtaken by India and Brazil.

The report also noted that, while global television ad revenue is estimated to decline by 3.6 per cent in 2019, the median growth rate was up 0.1 per cent and should be 1.8 per cent in 2020. This illustrates that there are many countries where TV advertising is still growing, especially as consumption using internet-connected devices continues to grow (accounting for nearly 15 per cent of TV-related activity and growing by about 30 per cent year-over-year).

Here’s how the report predicted the fortunes of the various medias up until 2024.

 

 

 

 




Please login with linkedin to comment

GroupM

Latest News

It’s Friday Quiz Time Again!
  • Media

It’s Friday Quiz Time Again!

Take B&T's trivia quiz for your chance to win a $100 booze voucher and possible cirrhosis of a major internal organ.

by B&T Magazine

B&T Magazine
Big data technology and data science illustration. Data flow concept. Querying, analysing, visualizing complex information. Neural network for artificial intelligence. Data mining. Business analytics.
  • Marketing

SenateSHJ Launches New Trans-Tasman Practices

SenateSHJ has launched a new digital, data and insights capability designed to help clients tackle the growing complexity of communication challenges. SenateSHJ Digital, Data and Insights (DDI) will combine the firm’s existing Digital and Insights functions to create a Trans-Tasman capability focused on digital communication, and the generation and use of data to improve communication. […]

New BrandStory Format From Bonzai Allows 3x More Ad Space on Mobile
  • Media

New BrandStory Format From Bonzai Allows 3x More Ad Space on Mobile

Creative technology platform Bonzai has announced the launch of BrandStory – a new premium mobile ad format. BrandStory offers triple the ad space and 2.8 times greater time in view than single scroll ad formats, addressing the surging demand from brands worldwide for more real estate to drive real results by seamlessly intertwining awareness, exploration […]

B&T’s Search For Australia’s Greatest Ad Heads To Channel 7
  • Advertising

B&T’s Search For Australia’s Greatest Ad Heads To Channel 7

B&T went through the looking glass this morning, with editor-in-chief David Hovenden (above) appearing on Channel 7’s The Morning Show to get the general public involved in our search for Australia’s Greatest Ad. Hovenden chatted with Kylie Gillies and stand-in host Matt Doran about what makes a great ad and showcasing some of our favourites […]

by B&T Magazine

B&T Magazine
Opinion: The Tall Planner’s Kate Smither On The DBA Dilemma
  • Opinion

Opinion: The Tall Planner’s Kate Smither On The DBA Dilemma

The science is not in question – smarter people than I, with far more data, have codified it. The logic is not up for grabs…it makes sense that creating mental shortcuts to your brand keeps you at the top of your mind. Lead image: Kate Smither – Owner, The Tall Planner I wouldn’t even take […]

Opinion

by B&T Magazine

B&T Magazine
African woman using a cellphone in an office alone
  • Marketing

Ortto & Tall Bob Partner To Deliver Better SMS & MMS For Australian & NZ Businesses

Two Australian-born technology providers have joined forces to bring more power and choice to marketers in Australia and New Zealand with mobile messaging that is more local, cost-effective, and integrated. It’s a partnership that sees two Australian software companies come together to deliver a world-class mobile-first solution for marketers building data-driven, personalised, omnichannel campaigns. While […]

Slew Of New Hires At Snap Inc.
  • Media

Slew Of New Hires At Snap Inc.

Snap Inc. has announced a number of new recruits. B&T unaware if it positively impacted SEEK's share price.

Reddit Gets Playful Brand Refresh
  • Technology

Reddit Gets Playful Brand Refresh

This will be of interest to any Reddit fans, graphic designers or lovers of an orange so bright it burns the retinas.

Zitcha & Broadsign Partner To Drive Global In-Store Retail Media Market
  • Advertising

Zitcha & Broadsign Partner To Drive Global In-Store Retail Media Market

Zitcha and Broadsign have teamed up to integrate the Broadsign out-of-home (OOH) advertising platform with Zitcha’s retail media platform. The collaboration empowers retailers to maximise and monetise in-store digital display networks and enables advertising partners to easily view and book available in-store inventory and review campaign performance alongside the retailer’s other media channels. With the […]

Double Rainbouu & 7-Eleven Launch Exclusive Summer Fashion Label
  • Marketing

Double Rainbouu & 7-Eleven Launch Exclusive Summer Fashion Label

Today, 7-Eleven has announced a one-of-a-kind collaboration with the popular Sydney-based anti-resort wear label Double Rainbouu. Dropping tomorrow, December 1, just in time for summer, this limited-edition capsule will infuse the fashion brand’s rebellious spirit with a distinctly iconic 7-Eleven flavour. The unisex collection features five must-have styles comprising two signature Hawaiian shirts, a peaked cap, a bucket hat […]