Advertisers will spend approximately 40.2% of their budgets on online advertising in 2018, compared to 37.6% in last year. By 2020, online advertising is expected to account for 44.6% of global ad spend.
This comes amidst growing industry speculation about digital advertising budget cuts, and is part of the wider process of digital transformation, according to Zenith’s latest Advertising Expenditure Forecasts report. It combined six independent studies on brand growth into a single index, and analysed how the new ranking correlated with financial performance, media activity, digital activity, and the performance of owned and earned content.
According to the report, countries in the Fast-track Asia category, including Malaysia, Indonesia, the Philippines and China, is expected to see an average ad spend growth of 7.4% annually until 2020. In 2017, ad spend grew by 6.8% for the region, despite the fact that it saw an ad spend of about 10.1% in 2016. Fast-track Asia is characterised by economies that are growing extremely rapidly as they adopt Western technology and practices and innovate new ones, while benefiting from the rapid inflow of funds from investors hoping to tap into this growth.
On the other hand, the countries in the Advanced Asia category – Singapore, Hong Kong, Australia, New Zealand and South Korea – are estimated to witness a 3.8% average annual growth to 2020, ahead of the 3.1% average growth rate since 2012. Ad spend in the region grew 5.3% in 2015, but slipped back to approximately 1.8% this year.
Over the next three years, the US will be the leading contributor of new ad dollars to the global market, followed by China, which combines large scale and rapid growth. Between 2017 and 2020 the report forecasts global advertising expenditure to increase by US$77 billion in total. Read more from marketing-interactive.com…
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