Online video to lead 4.4% growth in global adspend in 2015

New advertising expenditure forecasts, published today by ZenithOptimedia, reveal global adspend will grow 4.4% to reach $544bn in 2015 – and will accelerate to 5.3% growth in 2016, boosted by next year’s
Summer Olympics in Rio and the US Presidential elections.

The report also forecasts that adspend will eventually slow down slightly in 2017, growing 4.8%.

ZenithOptimedia has, however, reduced its forecasts for adspend growth in 2015 and 2016 by 0.5 and 0.3 percentage points respectively, due primarily to the deepening recession in Russia, Ukraine and Belarus, and a slowdown in growth in China.

The forecasts for each year are above the average annual growth rate for the last 20 years (4.2%), and well ahead of the average for the last 10 years (2.8%).

The fastest-growing advertising category is online video, “thanks to the explosion of mobile video consumption” and the spread of internet-connected devices, such as smart TVs and games consoles.

“Online video combines the emotional connection of television with the efficient targeting and measurable effectiveness of digital display,” said Steve King, ZenithOptimedia’s CEO, Worldwide.

“While television will remain dominant for many years to come, advertisers are increasingly utilising online video as an invaluable complement, giving them new opportunities to communicate brand values to consumers.”

UK Share of adspend

Advertising Data: 2003-2013 Advertising Association (internet 2004-2005 IAB, 2006-2013 Agency estimates), 2014 Agency estimates, 2015-2017 agency forecasts