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The year 2015 will see a rise of 4.9% in Global ad spend: A Study

26/12/2014

According to a recent report called new Advertising Expenditure Forecasts generated by ZenithOptimedia , there will be a growth of 4.9% in the global ad spend that will reach US$545 billion in 2015.
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The report also revealed that there will be a 6% growth in the global advertising market a year over the next three years and the main components driving this growth as per the study will be mobile, social media and the transition to programmatic buying of digital display.

As per the report, the growth will be 5.6% in 2016 and 5.2% in 2017. The main factors impacting the figures however will be the momentous events like U.S. Presidential elections, the UEFA European Football Championship and the Summer Olympics.

The countries that will lead the global market in new ad spend between 2014 and 2017 as per the study are:

1. The U.S(Accounting for 25% of the $86 billion in additional expenditures)
2. China (19%)
3. Argentina (7%)
4. The UK (5%)

As discussed earlier, the three factors driving the growth in future ad spends as per the report are:

1. Mobile
2. Social media
3. The transition to programmatic buying of digital display

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“Mobile technology is creating new opportunities for brands to build relationships with consumers, while programmatic buying is making brand communication cheaper and more effective,” said Steve King, ZenithOptimedia’s CEO, Worldwide.

“Social media provides a strong example of how to advertise effectively on mobile platforms, and we expect mobile marketing to develop further as other media learn from this example.”

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The Mobile’s Contribution

”Mobile will account for 51% of all new advertising dollars between 2014 and 2017!”

As found by the study, one in five people in the world own a smartphone, resulting in mobile advertising most likely to grow by an average of 38% a year between 2014 and 2017. The main reasons behind the growth as per the research are:

1. The rapid spread of devices
2. Innovations in ad technology
3. Improvements in user experiences

The Social Opportunity:

“Facebook and Twitter are expected to receive 33% of all mobile ad spend!”

Talking about the digital display, it’s doing amazing on mobile social media.

“Their ads are designed to blend seamlessly into the content feed — they look native rather than intrusive. They can track all their users’ media consumption within their apps, and can tie that into their desktop activity through their login details. Social media provides a great example of how to adapt to mobile!”

Shift to programmatic

Growth in traditional digital display has increased from 14% in 2012 to 18% in 2013, and 26% in 2014, which is its fastest rate of growth since 2007. In fact, the move to programmatic has bestowed traditional display a great boost.

“Agencies are swiftly adopting programmatic buying, which allows them to target display ads accurately and efficiently. The technology has recently evolved to deliver better premium, brand-building experiences. This has provided a sharp boost to ‘traditional’ digital display, as well as video and social.”

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The shift from TV to the online videos:

Although, till now there is a steady growth in TV’s market share of global ad spend, from 29.9% in 1980 to 39.6% in 2014, but as per the report it will fall to 37.4% in 2017. However, talking about the online video’s share of global ad spend, it is expected to increase significantly from 1.9% in 2014 to 2.8% in 2017.

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