Total global adspend will rise by 4.7 percent this year to reach $623 billion, boosted by stronger-than-expected spending on internet advertising—led by online video and social media—according to Zenith.
Zenith’s Advertising Expenditure Forecasts previously predicted 4 percent growth for this year. Zenith expects ad spend to rise by 4.6 percent in both 2020 and 2021, up from the previous targets of 4.2 percent and 4.1 percent, respectively.
Internet advertising rose by 16 percent last year to $246 billion and is forecast to reach $329 billion in 2021, 49 percent of global adspend. Online video advertising is expected to rise by 19 percent this year, and social media 14 percent.
Traditional linear television advertising, meanwhile, will rise by just 0.7 percent a year to 2021.
Zenith also revised upwards its forecasts for the U.S., Russia and France. The U.S., which accounts for 37 percent of global adspend, is expected to rise by 5 percent in 2019 and will be the largest contributor to global adspend growth between 2018 and 2021, adding $32 billion to the market, followed by China with $16 billion and India $5 billion.
By region, the fastest-growing block will be Eastern Europe and Central Asia, with an 8.4 percent gain expected, followed by “Fast-track Asia” at 7.3 percent, North America at 4.8 percent, “Advanced Asia” at 3.6 percent, Western and Central Europe at 3 percent, Latin America at 2.8 percent and Japan at 1 percent. MENA adspend is projected to fall by 4.8 percent this year, Zenith reports.
“Internet advertising will exceed a quarter of a trillion dollars for the first time this year,” said Jonathan Barnard, Zenith’s head of forecasting and director of global intelligence. “The speed of internet adspend growth continues to surprise us, as small businesses and digital challengers provoke established brands to up their game.”