In­ter­net ad­spend to over­take TV

ArabAd - - ADTALK -

The in­ter­net is ex­pected to over­take TV to be­come the largest medium for advertising in 2016, ac­cord­ing to the latest In­ter­na­tional Ad Forecast from Warc.

As well as down­grad­ing its global ad­spend forecast for 2015 by 2.5pp to 2.3% growth, Warc ex­am­ined the rise and fall of var­i­ous mar­ket­ing chan­nels in the 12 ma­jor mar­kets (In­dia, China, UK, Brazil, Aus­tralia, Ger­many, Ja­pan, USA, Canada, Italy, France, Rus­sia) cov­ered in its re­port.

The 12 mar­kets stud­ied com­prise some 75% of all advertising ex­pen­di­ture tracked by Warc.

Across all key mar­kets, in­ter­net ad­spend is ex­pected to register rapid growth, ris­ing 15.6% to $135.9bn in 2015 and 12.7% to $153.1bn in 2016.

At the same time, ad­spend on TV is ex­pected to fall 0.9% to $144.9bn this year be­fore re­bound­ing with 3.1% growth in 2016. By then, TV ad­spend across the 12 mar­kets will be worth $149.4bn, or $3.7bn less than ad­spend de­voted to the in­ter­net.

The in­ter­net is al­ready the largest ad plat­form in six of the 12 ma­jor mar­kets and they in­clude Aus­tralia (as of 2014), Canada (2014), China (2014), France (2014), Ger­many (2013) and the UK (2011).

In ad­di­tion to be­com­ing the first ma­jor mar­ket where in­ter­net advertising leads, fur­ther data show the UK spent the most per head on in­ter­net advertising in 2014.

UK per capita in­ter­net ad­spend amounted to $187 (£114) last year and it is forecast to carry on grow­ing to reach $233 (£142) in 2016.

Look­ing at four other ma­jor mar­kets, per capita in­ter­net ad­spend in Aus­tralia is forecast to grow to $225 in 2016, fol­lowed by the US ($202), Canada ($118) and Ger­many ($97).

Even on the ba­sis of Pur­chas­ing Power Par­ity (PPP), when ex­change rate fluc­tu­a­tions are re­moved, the UK still leads and is fol­lowed by the US and then Aus­tralia.

For other media in 2016, Warc fore­casts rises in PPP ad­spend for cin­ema (+3.3%) and out­door (+2.4%). How­ever, ad­spend on news­pa­pers (-5.8%), mag­a­zines (-7.4%) and ra­dio (-0.1%) is ex­pected to fall next year.

Com­ment­ing on the re­port, Warc data an­a­lyst James Mcdon­ald said: "In­ter­net ad­spend has grown at a phe­nom­e­nal rate since the dot-com bub­ble burst, and more re­cently an in­flux of spend­ing on mo­bile ads has boosted this growth fur­ther.

"While tele­vi­sion will con­tinue to draw a vast amount of ad rev­enue over the com­ing years, the added tai­lour­ing and tar­get­ing of­fered by in­ter­net ads will prove ever more at­trac­tive to mar­keters, par­tic­u­larly as these fea­tures be­come more re­fined."

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