Carat forecasts continued positive momentum in global ad spend with 5.4% growth in Australia

Australia: Carat has published its updated forecasts for worldwide advertising expenditure, showing a positive outlook for the global advertising market in 2016, set to continue in 2017 powered by the ongoing growth of digital.

Based on data received from 59 markets across the Americas, Asia Pacific and EMEA, Carat’s latest global forecasts show that advertising spend will reach US$548.2 billion in 2016, accounting for a +4.4% year-on- year growth. The healthy outlook is fueled by a buoyant 2016, marked by high-interest media events including the UEFA EURO championship, the Rio 2016 Olympics and Paralympics, as well as the upcoming US presidential elections.

In 2016, Carat reports a positive outlook for most regions with particularly robust growth in North America (+5.0%) and strong recovery in Russia (+6.2%), countering lower expectations in some markets. Despite a slight decline due to volatility in some markets, the positive momentum of the global advertising spend is expected to continue into 2017 reaching US$570.4 billion, a +4.0% year-on-year growth, led by the ongoing upsurge of Digital media. As the leading media type in 13 of the markets analysed.

The Australian advertising market in 2016 is expected to generate significant growth of +5.4%, building on the strength of Digital, which continues to generate strong double-digit year-on-year increase. Other key drivers of growth include a 12-week lead-up campaign to the Federal elections held in July 2016, as well as the Rio 2016 Olympics and Paralympics, collectively accounting for an estimated US$110 million spend this year. Despite the absence of major media events in 2017, the positive outlook for Australia is predicted to continue next year at a healthy pace of +4.5%, also facilitated by the return of the Liberal Coalition to power which is expected to bring positive business conditions.

Says Simon Ryan, CEO, Dentsu Aegis Network Australia on the Carat advertising expenditure forecasts: “Carat’s latest Australian advertising spend forecasts show continued confidence in the market with positive growth as businesses continue to see results from strategic media investment. With Australia being an advanced digital economy we are seeing momentum in mobile, online search and video all leading the rapid growth in digital investment. With Digital and media convergence leading brands, they can build deeper engagements and gain a superior understanding of their audience and activations through data-led media solutions.”

For the full report, click here.