Carat predicts 5% global ad growth
Carat, a leading independent media planning and buying specialist, has published forecasts for global advertising expenditure, predicting a boost of 5% for this year, as well as in 2015. Based on data received from 59 markets across North and South America, Asia Pacific and EMEA, the Dentsu Aegis network’s latest forecast shows an increase of ad spending from the 4.8% prediction made in March 2014.
Regionally, the Carat Advertising Expenditure forecast has predicted further positive growth from North America and Western Europe. Significantly, the US continues to show strong market growth, with levels of advertising expenditure in North America expected to exceed the pre-recession peak of 2007 for the first time by the end of this year. Western Europe is forecasted to return to positive growth of 2.7% after two consecutive years of declining advertising spend – driven by a strong UK advertising market prediction of 7.5% growth for 2014.
Although forecasts show a slight decline in growth when compared with March 2014 predictions, Asia Pacific and Latin America are still both forecast to outperform global predictions with growth rates of 5.4% and 12.1% respectively.
Digital ad spend growth is predicted to exceed previous predictions for 2014, with a year-on-year growth forecast of 16.1%. The digital sector will also increase its total share of spend, set to reach 20.5% in 2014 and 22.6% the following year, where it will outpace the combined Magazine and Newspaper global share for the first time.
The Print sector, while in steady decline, is expected to continue, and all other mediums are set to achieve year-on-year growths of approximately 3-5% in 2014 and 2015.
“Carat’s latest advertising forecast gives us increased optimism for the outlook of global and regional advertising spend,” says Jerry Buhlmann, CEO, Dentsu Aegis Network. “With the global recession further behind us and a healthy trend of 5% year-on-year global ad growth, there is positive momentum building across the industry. Whilst Digital continues to headline market trend discussions, the components within this dominant media now provide the interesting chapters, with the opportunities in mobile leading the debate. With changes and trends in consumer behaviour driving business opportunities, brands need to deliver innovative and integrated solutions to reap rewards ahead.”
For access to the full Carat Advertising Expenditure forecast, visit http://goo.gl/kCEnzw