Carat boosted its 2016 U.S.ad growth estimate three-tenths of a point to +5.0%, and increased its global outlook one-tenth of a point to +4.5%, citing “a buoyant 2016, marked by high-interest media events including the UEFA EURO championship, the Rio 2016 Olympics and Paralympics, as well as the upcoming USA presidential elections”.
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Carat reports particularly robust growth in North America (5 percent) and strong recovery in Russian Federation (6.2 percent), countering lower expectations in some markets. Conversely, more moderate growth remains in China where advertising spend is expected to increase by 5.7% in 2016 and +5.5% in 2017, as the market adjusts to a “new normal” economic landscape.
Last month, however, media agency Madison Media released a mid-year review of its Pitch Madison Advertising Report 2016 which downgraded the growth rate for television advertising. Ashish Bhasin, chairman and CEO (South Asia), Dentsu Aegis Network, said that Carat had anticipated that the advertising spending in India will grow by 12% in 2016 and “in our latest forecast, we continue to maintain that”.
Global advertising spend is on the increase, with a 4.4% year-on-year growth for 2016, that’s according to Carat, part of the global, Dentsu Aegis Network.
In Australia, ad spend has been buoyed by the 12-week Federal Election campaign and the Rio 2016 Olympics and Paralympics, collectively accounting for an estimated US$110 million spend this year. Spend is expected to accelerate by 12.0% in 2016, a buoyant year with multiple media events taking place in the market, including the T20 Cricket World Cup, the Indian Premier League (IPL) as well as the state elections.
TV continues to hold the highest share of total media spend (41.1%).
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“Expanding over three times faster than the global rate, Digital reaffirms itself as the unrivalled driver of growth”. While it is expected to grow by 2.3% in 2017, Carat forecasts a lower predicted share of spend at 40.3%. As the digital economy brings complexity, speed of change and disruption, it is only through digital that brands can build engagement and remain relevant to their audiences on a fully addressable and real-time basis. “Mobile will drive the digital growth immensely and India will transform into mobile-only market very rapidly, aided by better broadband penetration and drop in data rates”, he said.
