Magna, GroupM and Zenith project relatively healthy increases
Magna, GroupM and ZenithOptimedia all projected relatively healthy increases in global ad spending in 2017, despite the challenges in following a year that included the Summer Olympics and a US election.
Magna said it expects global ad spending to increase 3.6% next year, down from 5.7% in 2016. GroupM and Zenith put expected growth at 4.4% for 2017.
For 2016, Magna said US digital ad sales will register an 18.0% increase, reaching $70 billion, driven in large part by mobile and social media. Growth is projected to slow down in 2017.
Advertising revenues from mobile will register a 54.2% increase this year, Magna said. That growth rate will fall to 34.5%, it projected. Similarly, social advertising revenues are expected to grow 49.2% in 2016, with growth slipping to 26.3% next year.
Zenith said its 4.4% growth projection for 2017 matches its expectations for 2016 gains, but noted that spending trends vary widely from region to region, with declines in the Middle East and Africa and relatively flat growth in Latin America.
Zenith said it expects global ad spending on social media to grow by 72% from 2016 to 2019, at which point it will make up 20% of all digital advertising.
GroupM noted concern about political uncertainty in the US and the UK, but said advertising budgets had not been affected. “China and other ‘new world’ countries continue to over-contribute to global growth,” it said.
In 2016, GroupM said, digital captured 72 cents of every new ad dollar spent, while TV captured 21 cents. The split will tilt even further in digital’s favor in 2017, with digital winning 77 cents per new dollar, compared with 17 cents for TV.
This article has been updated to correct Magna's global ad spending growth forecast.