Planning your budgets for 2017? Here’s what the experts are predicting in ad spend.
Business Insider recently released a report that collated prediction findings from the big media houses for 2017.
They found that Ad spend will increase in absolute terms, but year-on-year growth will slow. However, there were different opinions on the exact figures;
- GroupM believe ad spend will grow 3.1% in 2016 but slow to 2.6% in 2017, driven by weaker US GDP growth and political uncertainty.
- Magna see ad spend in the US slowing to just 1.7% growth next year, with TV ad revenue dipping.
- Zenith expects ad spend growth to stay flat next year. Global ad spend will rise 4.4% in 2016 and continue to grow at this pace in 2017.
Media buyers agree that digital formats will continue to grow impressively as legacy formats struggle, in particular print but also TV now taking a major hit. How we consumer digital is also rapidly changing with mobile overtaking desktop consumption in the past three years.
- GroupM predict digital will account for one-third of ad spend next year.
- Magna see digital ads becoming the top media category next year, reaching $202 billion and a market share of 40% and rising to 50% by 2021.
- Zenith is expecting global ad spend on social media to reach $50 billion by 2019, accounting for 20% of all internet ad spend.
See the full Business Insider Report here.
Images: Courtesy of BI Intelligence and Facebook.