Digital spend is the only media predicted to increase market share this year, according to Carat’s forecast for worldwide advertising expenditure in 2015.
Based on data received from 59 markets across the Americas, Asia Pacific and EMEA, Carat’s latest forecast shows global advertising revenues accelerating by 4.8% this year to $551 billion – predicting global ad spend in 2015 to continue on an upward trend with 5% year on year growth.
Digital spend continues to increase at a rapid global growth rate of 15.5% in 2014, outperforming all other media and the only media to extend its market share based on 2014 and 2015 predictions.
In the UK, Carat’s 2014 predictions are higher than the actual 3.8% growth rate for 2013, with “continual innovations and developments across all platforms [maintaining] levels of growth in the market.”
UK TV ad revenues for 2014 are forecast to be up by 3%, with the main period of expected growth occurring in the second quarter of 2014 as a result of the World Cup in June.
Digital spend is forecast to grow at the highest rate of all media with an increase of 12%, while out-of-home will increase by 4%, with a small spike expected to be generated by the Commonwealth Games in Glasgow.
Overall, growth in the UK market is expected to continue into 2015 with a 4.5% year on year increase, due in large measure to the improving economic landscape as advertisers embrace new technologies within digital and digital out-of-home platforms.
“The real story of the advertising market is the dynamics in digital media,” said Jerry Buhlmann, CEO of Dentsu Aegis Network.
“Digital growth accounts for three times total growth and the seismic trends within digital are causing a convergent media revolution. Social, mobile and video will all grow by at least 50% in 2014 through developments in powerful technology, access to information and increasing consumer trust.
“Whilst the prolific sporting events including the Winter Olympics in Sochi and the World Cup in Brazil will continue to drive TV advertising spend in 2014, the gold medal winners will ultimately be the digital world.”
