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Global ad spend to rise 4.4% annually
GLOBAL advertising spending is expected to reach US$548.2 billion in 2016, rising 4.4 percent annually, thanks to robust growth in North America and strong recovery in Russia, Dentsu Aegis Network’s media communications agency Carat said in its latest global forecast yesterday.
China, the world’s second-largest advertising market, is expected to see US$81.8 billion in spending this year and, although the era of double-digit growth is over, China is still the fastest growing ad market behind India and Russia, with a similar growth pace of 5.5 percent estimated for 2017.
Globally, the upbeat outlook is fueled by a number of media events, including the UEFA European Championships, the 2016 Rio Olympics and Paralympics, as well as the upcoming United States presidential elections.
Digital advertising continues to grow at double-digit rate — 15.6 percent in 2016 and 13.6 percent in 2017.
In China, mobile ad expenditure will drive overall digital spending growth to 47.1 percent this year and 34.6 percent next, and soon would make up more than a third (34 percent) of total digital spending in 2017.
Television still dominates overall ad spending, with a 53.4 percent share predicted in 2016 and 51.2 percent next year, although annual growth is moderate compared with digital and out-of-home advertising.
Jerry Buhlmann, CEO of Dentsu Aegis Network, said: “As the digital economy brings complexity, speed of change and disruption, it is only through digital means that brands can build engagement with audiences on a real-time basis.”
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