Recent data gathered by ZenithOptimedia shows that the global media advertising landscape is due to change dramatically by the year 2017, Marketing Charts notes. It is predicted that global ad spend will increase by 4.9% next year, 5.6% in 2016 and 5.2% in 2017. In 2015 this will equate to approximately $545 billion.
The predicted increase for 2015 is slightly below the 5.1% recorded for 2014 due to the absence of global events such as the Winter Olympics, the football World Cup and the US mid-term elections. In 2016, the predicted high increase will be attributed to the Summer Olympics in Brazil, the UEFA European Football Championship and the US Presidential elections. Come 2017, however, this increase will probably reduce a little in the absence of such events.
The different sectors of media ad spending will all fluctuate in their share of budgets; TV, for example, currently accounts for 39.6% of global ad spending, but this will sink to 37.4% in 2017. Newspapers will also decrease from 15.2% currently to 12.2% in three years’ time. Desktop internet will rise from 18.8% to 19.6% and mobile internet will more than double in its share, from 5% to 11.4%. The share of cinema advertising is expected to remain flat at 0.5%.
It is also predicted that by 2017, ad spend on desktop internet will exceed that of traditional print media, with the already mentioned 19.6% rate exceeding the combined total of 18.1% from magazines and newspapers.
Mobile is expected to be a key driver in the growth of global adspend, due to account for more than half of all new advertising dollars spent between 2014 and 2017, seeing an increase of around $42 billion.