The international media group had forecast global adspend growth of 4.3% in its last report, published in June, but the revised figure still represents an improvement of 0.5% on last year.
This is because global ad budgets are expected to get a lift from a number of major events, such as the forthcoming PyeongChang Winter Olympics in South Korea and the US mid-term elections in November, Campaign Asia reported.
For its latest report, Dentsu Aegis Network analysed 59 markets across five regions and it revealed that Asia-Pacific stood out as one of the strongest in term of growth.
Boosted by events such as the Commonwealth Games in Australia and the 2018 Jakarta Asian games, the APAC region is expected to record 4.2% growth in adspend this year compared with 3.5% in 2017.
What’s more, APAC is reported to be the leading contributor to global adspend growth in 2018, contributing 39.7% to the total US$20.3bn incremental worldwide increase.
However, there are significant variables across the region with India forecast to register 12.5% growth this year whereas Australia is expected to grow by a modest 2.9% – a significant drop from the 4.8% growth forecast for the country last June.
According to Campaign Asia, Dentsu Aegis Network attributes the mature Australian market, ad fraud and data accuracy issues and an economic slowdown for the trend.
China, meanwhile, is forecast to remain a strong market, but its growth rates are expected to slow from 6.0% in 2017 to 5.4% in 2018 and 5.3% in 2019.
And looking at some of the other major markets covered in the analysis, the report forecast adspend growth of 3.2% in the US this year, 1.1% in Canada, 2.9% in the UK, 2.6% in Germany, 2.0% in France, 5.0% in Brazil and 1.6% in Japan.
Turning to global adspend by media, the report forecasts digital will produce double-digit growth of 12.6% this year – down slightly from 12.9% that was forecast in June.
For further depth, WARC's International Ad Forecast is available to download, containing a comprehensive breakdown of adspend predictions for 12 key markets.
Other growth areas include TV (0.5%), radio (1.3%), cinema (4.6%) and outdoor (2.4%), but newspapers and magazines are expected to decline by -7.9% and -5.9% respectively.
The report also predicts that mobile adspend will increase by 23.8% this year to reach US$121.1bn, or 62% of total digital spend, while desktop will fall by -0.2%.
Sourced from Campaign Asia; additional content by WARC staff