LONDON: Global advertising expenditure is expected to register year-on-year growth of +4.5% in 2016 and to maintain the same growth rate into 2017, according to the latest forecast from Carat, the global media network.

Based on data received from 59 markets across the Americas, Asia Pacific and EMEA, Carat expects global adspend to reach $538bn this year with the industry benefiting from a series of high-profile events, such as the Rio 2016 Olympics and Paralympics, the UEFA Euro football tournament and the US presidential elections.

The report shows that digital will account for 27.0% of overall global adspend this year, rising to 29.3% in 2017, and this is being driven by a surge in budgets dedicated to mobile (+37.9%), online video (+34.7%) and social media (+29.8%).

Digital is already the principal medium used (based on spend) in 12 of the markets surveyed and these now include territories as diverse as Hong Kong and Estonia. The US, Germany, Taiwan and Austria are predicted to join the list in 2018.

However, while digital is closing the gap on more traditional media around the world, Carat still expects TV to command the majority of market share as it generates significant numbers of viewers for the major events mentioned earlier. TV's market share stood at 42.0% in 2015 and this is forecast to rise by +3.1% this year.

Looking at the findings from a regional perspective, Carat expects the North American market to remain strong this year with solid growth of +4.6%.

Adspend growth in Western Europe is forecast to be a more modest +3.1%, but the report highlights that the region is being driven by solid growth in the UK (+6.2%) and Spain (+5.3%).

Advertising markets in Asia Pacific and Latin America will also remain strong in 2016, the report said, and they are expected to grow +4.4% and +10.5% respectively. India alone is forecast to see adspend growth of +12.0% this year, rising to +13.9% in 2017.

Jerry Buhlmann, CEO of Dentsu Aegis Network, Carat's parent company, described the report as providing "reinforced optimism for global advertising spending".

He said: "The strength of digital continues to be the dominant element in the growth of the global advertising expenditure whilst TV spend remains as the foundations of our industry."

Data sourced from Carat; additional content by Warc staff