A new report into global ad spends paints a rather rosy picture for the industry amid claims that a staggering $US1.3 trillion will be spent on all forms of advertising worldwide this year alone.
The report by US-based PQ Media found ad spends in 2018 will grow by 5.5 per cent year on year, making it the fastest growth in the past decade.
Unsurprisingly, the fastest growing categories were the new ones such as online video, smart technology marketing and influencer marketing. These newer categories are set for 11.6 per cent growth in 2018 and spends totalling $US496.08 billion or 38.2 per cent of every dollar spent.
However, the likes of TV advertising and PR also showed significant growth according to PQ’s results. Traditional advertising will account for $US803.28 billion of all ad dollars spent in 2018 and, at 2.1 per cent, the category’s enjoying its fastest growth since 2008. This was primarily due to US TV networks charging more for their ads.
Commenting on the results PQ Media president Patrick Quinn said: “Counterintuitive as it seems, this year’s TV upfront has reportedly been robust. While the total number of ads sold is said to be flat, ad prices are expected to garner at least high single- digit increases. While a good portion of TV dollars are still being allocated for traditional ad pods, more money is flowing into traditional TV and digital ad bundles, product placements and other branded entertainment.
“As a result, the fastest growing segment of TV product placement is OTT video, as brand marketers seek more opportunities to mitigate the impact of streaming video and DVR use among the 18-34 demographic,” Quinn said.