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India, China to record strongest annual ad spend growth in 2016: Warc

Advertising expenditure is set to rise 4.4% in 2016 following 2.2% growth this year. Global ad spends to increase by 4.4% at current prices in 2016. Internet is forecast to become largest medium for advertising in 2016

BestMediaInfo Bureau | Delhi | December 21, 2015


Warc, the marketing intelligence service, expects global advertising spend (based on 12 major markets) to increase by 4.4% at current prices in 2016, according to its latest International Ad Forecast. This growth rate is double the estimated 2.2% rise in global ad spend witnessed during 2015.

If inflation is taken into account, global ad spend in real terms is expected to rise by 1.1% this year and a further 2.3% in 2016. The 12 markets studied comprise two-thirds of all advertising expenditure tracked by Warc.

India (13.0%) and China (6.9%) are predicted to record the strongest annual increases in ad spend in 2016, however both are susceptible to high levels of inflation. The UK then follows, with an estimated growth of 5.7% next year.

The US, the world's largest ad market, is expected to see ad spend rise 4.9% next year, boosted by the twin stimuli of the Summer Olympics and presidential elections. American television is the largest single medium for advertising in the world, and spend is expected to rise 4.8% to $175bn in 2016, an upward revision of half a per cent since our last forecast in July.

Internet forecast to become largest medium for advertising in 2016

Across all key markets, internet ad spend will continue to register rapid growth, rising 17.4% and 12.2% this year and next. Conversely, advertising expenditure for TV is estimated to have fallen by 2.5% this year, although these losses will be negated by a forecast 2.9% rise in 2016.

On the current trajectory, internet will become the largest medium for advertising within our sample in 2016. Internet is already the biggest ad platform in half of our 12 major markets.

James McDonald, Data Analyst at Warc, commented, “The stimuli of major sporting and political events underpin our 4.4% growth forecast for global ad spend next year. Digital growth is expected to remain in the double-digits, and ad tech is evolving rapidly.”

“Programmatic trading is becoming commonplace, galvanising spend on so called traditional media such as outdoor, radio and indeed TV. More is being spent to engage with the ‘always on’ consumer, and this has led to internet becoming the largest ad medium among our 12 major markets.”



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