Ad Spend Report Predicts Market Optimism Fueled by Digital Growth

Digital to make up over 25% of total advertising spend in 2016


According to forecasts published by media planning and buying company Carat, digital will account for more than a quarter of worldwide advertising expenditure in 2016. The forecast combines actual expenditure in 2014 with Carat’s latest estimates for 2015.

Even negative economic headwinds don’t seem to be slowing down digital advertisers as all regions, Western Europe, North America, Asia Pacific and Latin America, reported positive spending growth in 2014.

Carat says we’re seeing a dramatic rise of 50% in mobile ad spending in this year compared to 2014. Advertisers are also putting money into video and Carat predictions for 2015 show a 21.1% increase in online video spending.

While digital media are the star performers in terms of growth, achieving +17.4% in 2014 and accounting for 21.7% of market share, TV will continue to command the majority share for the foreseeable future, reaching 42.7% in 2014.

Carat Ad Spend Report

Image: Global ad spend growth and predictions. Source: Carat Ad Spend Report

Based on data received from 59 markets Carat forecasts that in 2015 advertising spend across all media will expand by 23.8 billion US dollars to reach 540 billion USD, representing a 4.6% year-on-year increase. The optimism is expected to continue into 2016 with Carat predicting a year-on-year global advertising growth of 5.0%.

The strength of Digital continues to dominate discussions and the new distribution of spending. With a quarter of the global population now owning and relying on their smartphones daily, they are our second brain in our hands. Mobile dominates the way consumers access information, view content, browse products and purchase goods and this is reflected in the innovative services and approach we are discussing with our clients,” comments Jerry Buhlmann, CEO of the global media group Dentsu Aegis Network.

Note: ‘Digital’ includes advertising spend from Search, Display, Online Video, Social Media and Mobile.

ReferenceDentsu Aegis Network News

Full report available: here.

Photo credit: emin kuliyev /

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