Ad market in 2016

Ad market in 2016

In 2016 the advertising industry will by all means experience slow growth, according to a new global media and marketing forecast from WPP's GroupM.

In its annual report GroupM predicts that global ad investment will continue to grow by 4.5 percent in 2016 after a 3.4 percent growth in 2015. GroupM's Futures director Adam Smith noted that one of the key standards for 2016 revolve around mainland China, which he said will contribute the largest amount toward global ad growth in 2016 followed by the U.S. and U.K. GroupM forecasts worldwide media and marketing spending will reach $965 billion in 2016, with a growth of 4.4% from $924 billion in 2015.

Another outcome of the report, which extracts information from the 70 countries in the GroupM network, is the resilience of traditional TV advertising. In 2012, traditional TV made up 44 percent of global ad investment. Each year since, it has shed roughly one percentage point.

„The U.S. has a certain perspective where [TV advertising] is a particularly competitive market,” noted Adam Smith. „The picture around the rest of the world is not quite so worrying. TV advertising is actually holding up pretty well.”

Dominic Proctor, global president of GroupM, exclaimed that one of the crucial challenges agencies and marketers will face, is a creative one. Proctor suggested that as media habits continue to rapidly shift towards mobile, breakthrough creative for those new platforms has fell behind.

Global ad growth is expected to reach $22 billion in 2016, with an estimated 90 percent share of digital media. The internet's projected share of worldwide major-media ad spending is 29 % in 2015, 31.9% in 2016, 34.4% in 2017 and 36.6% in 2018. Print advertising will continue to make up 18 percent of global advertising. Digital media will contribute 31 percent of global advertising budgets. Measured-media spending shows a decreasing tendency, by including traditional media and internet display advertising, it dropped 2.1% in 2014 for the 100 biggest global advertisers. That's the weakest result since the last recession.

China, the U.S., the U.K., Brazil, India and Japan will comprise 75 percent of the $22 billion global ad growth in 2016.