The latest global advertising expenditure forecast report released by Carat that covers 59 markets across the Americas, Asia Pacific and EMEA, shows that advertising spend remained buoyant in 2016, increasing overall by US$23 billion in 2016 to hit US$538 billion - a +4.5% year-on-year increase compared to 2015.
The latest forecast reconfirms the rise of Digital as established drivers of global advertising spend growth. Powered by the upsurge of Mobile (+37.9%), Online Video (+34.7%) and Social Media (+29.8%) in 2016, the strength of Digital is expected to continue to grow at double digit prediction levels of +15.0% this year along with a further +13.6% in 2017.
Overall, Carat has predicted the upsurge of Digital to account for 27.0% of advertising spend in 2016 and extend significantly to 29.3% in 2017, reaching US$161 billion globally. However, in 2015 all regions reported positive growth, from Western Europe at +2.8%, +4.3% in North America, +3.6% in Asia Pacific and Latin America at +11.0%.
The report also mentioned that unlike the growth in other BRIC markets - Brazil, Russia and China - advertising expenditure in India will continue to accelerate. Following a buoyant year in 2015 with a growth of +11.0%, 2016 began on a positive note with a forecast growth rate of +12.0%.
Where ad revenues for TV are forecasted at grow by +12.3% in 2016, a strong spending on e-commerce and FMCG brands is also planned. Share of total digital ad spend in India will be relatively low at 8.9% for 2016. However ad spend in print is expected to continue at +10.5% in 2016.
Carat's first forecasts for 2017 predicted to continue strong growth for the advertising market in India with an estimated increase of +13.9% and expected favourable economic conditions in which advertisers vie for consumers' attention.
Commenting on the Carat Advertising Expenditure forecasts, Jerry Buhlmann, CEO of Dentsu Aegis Network, said, "Carat's latest advertising forecast and its first analysis of the 2017 landscape gives us reinforced optimism for global advertising spending. Whilst economic volatility has impacted some major markets, solid growth has been maintained globally, with stability foreseen for this year and next. The strength for digital continues to be the dominant element in the growth of the global advertising expenditures whilst TV spend remains as the foundation of our industry."