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India’s ad spend growth pegged at 11% in 2015: Carat report

The country’s ad spend growth for 2016 is forecast at +11.3%. From a global perspective, Carat forecasts that in 2015, ad spends across all media will increase by +4.6% y-o-y to reach $540 billion

BestMediaInfo Bureau | Mumbai | March 31, 2015

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Carat has published its first forecast for worldwide advertising expenditure in 2016, combined with its latest forecasts for 2015 and actual figures for 2014.

In India, following the formation of a stable government in 2014, economic prospects look bright. Advertising spend increased by +8.7 per cent in 2014 and are forecast to leap by double digits of +11.0 per cent in 2015. Further growth of +11.3 per cent is predicted for 2016.

Based on data received from 59 markets across the Americas, Asia Pacific and EMEA, Carat’s global advertising expenditure forecasts show Digital media, with a predicted $17.1 billion or +15.7 per cent increase in spend in 2015, is outpacing previous Carat predictions from September 2014. Powered by a dramatic rise in Mobile ad spending globally of +50 per cent and Online video of +21.1 per cent predicted in 2015, Carat forecasts that Digital will, for the first time, account for more than a quarter of all advertising spends in 2016, with a market share of 25.9 per cent.

From a global perspective, Carat forecasts that in 2015, advertising spends across all media will increase by $23.8 billion to reach $540 billion, accounting for a +4.6 per cent year-on-year increase. Market optimism continues into 2016, with Carat’s first forecast for the year predicting a year-on-year global advertising growth of +5.0 per cent.

In 2014, all regions reported positive growth – from Western Europe at +2.3 per cent, +4.5 per cent in North America, +5.3 per cent for Asia Pacific, and high performing Latin America at +11.4 per cent. North America continues to grow at a solid pace of +4.5 per cent in 2015 and +4.6 per cent in 2016, with programmatic spending in the US predicted to grow by +137 per cent, reaching spend levels of $10 billion.

Media wise, whilst Digital is the star performer in terms of growth, achieving higher that predicted levels in 2014 of +17.4 per cent and accounting for 21.7 per cent of the market share, TV will continue to command the majority of market share for the foreseeable future, reaching 42.7 per cent in 2014, and is predicted to grow by more than +3 per cent year-on-year in 2015 and 2016. The steady decline in Print is expected to continue, however, Out-of-Home is now positioned as the second fastest growth media, behind Digital, with a global market share of spends of 7.1 per cent. For the first time, OOH is predicted to outpace Magazines’ global share of advertising spends, with Magazines forecast to achieve 6.9 per cent market share in 2015, and with continuing declines for this media, it is predicted to fall behind Radio for the first time in 2016.

Commenting on the Carat Advertising Expenditure forecasts, Jerry Buhlmann, CEO, Dentsu Aegis Network, said, “Carat’s latest advertising forecast gives us increased optimism for the outlook for global advertising spending. With harder times behind us, negative growth markets are pleasingly now a minority, and collectively we can look ahead to 2016 with positive growth predicted for all key markets.”

He further said, “The strength of Digital continues to dominate discussions and the new distribution of spending. With a quarter of the global population now owning and relying on their smartphones daily, they are our second brain in our hands. Mobile dominates the way consumers access information, view content, browse products and purchase goods, and this is reflected in the innovative services and approaches we are discussing with our clients.”

Info@bestmediainfo.com

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