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Zenith Optimedia forecasts Global advertising market growth at 5.3 per cent for 2014 & 2015

by MN4U Bureau
September 22, 2014
in Exclusive
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The global advertising market is expected to grow by 5.3 per cent this year to $523bn, aided by the growth in digital advertising technology, according to the latest Advertising Expenditure Forecast by ZenithOptimedia.

The growth has been predicted to ‘remain strong’ for the next two years, following growth in 2013 of 3.9 per cent, with 2015 forecast to continue at 5.3 per cent, and then increase in 2016 by 5.9 per cent.

Online advertising was one of the major factors highlighted within the report as being behind the growth, itself forecast to expand at 17.1 per cent this year as a result of an improvement in advertising technology driving down cost but also having improved efficiencies.

According to ZenithOptimedia, online advertising will account for almost a quarter (23.6 per cent) of global advertising budgets this year, and 28.3 per cent by 2016.

The evolution of programmatic buying has also been highlighted as another growth aid, while traditional display advertising has been forecast to grow at an average of 15.8 per cent between 2013 and 2016.

Social media display was forecast to grow at an average of almost a third (29.9 per cent) each year during 2013 and 2016 as a result of continued mobile user-ship growth, while online video advertising will expand by almost a quarter (24.2 per cent) during the same period.

Mobile advertising has been pinpointed as the largest growth sector, with a forecast for this year of 67 per cent, seven times that of the pace of desktop online advertising. It will also made up a fifth of all online advertising it was predicted, worth $35bn by 2016, making up 42 per cent of all extra advertising spend within the market.

This will be followed by TV at 30 per cent and desktop online at 28 per cent.

“Internet advertising is expanding rapidly as new technology makes it easier for advertisers to reach the right people at the right time with the right message, at an efficient price. The spread of ever more sophisticated mobile devices will help this expansion continue, sustaining steady growth in global ad-spend for the next few years,” explained Steve King, chief executive of ZenithOptimedia Worldwide.

Meanwhile, Paid search was forecast to grow at an average rate of 14 per cent over the coming three years as well. 

 

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