GLOBAL: Some $24bn in new net advertising investment will be generated during 2018, according to latest figures from GroupM, with the US and China contributing over half that total.
This Year Next Year, the media agency’s half yearly media and marketing forecast, expected that this year will see the best annual increment since a $26bn bounceback in 2010 after the global financial crisis.
Six countries are predicted to provide three quarters of the expected growth and the top two more than half: the US is slated to deliver $6.9bn in new net advertising investment (although adspend is rising at a slower rate than GDP), and China will bring $6.1bn to the table.
While the rate of ad growth in China is slowing, from 6.8% this year towards 5% in 2023, GroupM stressed that the $6bn figure was more than the whole of Europe at $4bn.
Within Europe, the UK leads the way, contributing an expected $1.6bn in growth in 2018 – this, the report noted, “against expectations of Brexit calamity and bouts of consumer fatigue”.
It highlighted “colossal digitization” in the UK and said this would account for 60% of recorded ad investment in 2019.
Japan also features in the top six with a projected $1.3bn growth, followed by India on $1.2bn.
The Philippines is the final billion-dollar contributor, with forecast per-capita ad investment of $60 this year, which is double the regional average although less than the world average of $93.
GroupM added the caveat that the Philippines is undercounted, as digital is still not measured there (while also noting that digital accounts for 20% of ASEAN advertising investment where it is measured).
Sourced from GroupM; additional content by WARC staff