MAM

Digital ad-spend to be 37.6% Vs TV's 35.9% by '18: DAN

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/smartcrop_800x800/public/images/tv-images/2017/06/15/dan.jpg?itok=i5DT_u8G

MUMBAI: The world media is reaching a tipping point in ad spend now as digital overtakes television, mobile overtakes desktop and paid search overtakes print. Dentsu Aegis Network’s forecasts suggest that, in 2018, digital will be the top media in terms of global share of spend, taking over television for the first time. Digital’s share of total media spend is predicted to reach a 37.6% share in 2018 (up from 34.8% in 2017), versus 35.9% for television (down from 37.1% in 2017), amounting to a total value of US$ 215.8 billion.

Based on data received from 59 markets across the Americas, Asia-Pacific, Europe, Middle East and Africa, Dentsu Aegis Network’s Ad Spend Forecasts – June 2017 point to a more cautious economic outlook in 2017 than the previous year, with global ad spend growth falling from 4.8% to 3.8% (see Figure 1). However, conditions are set to improve in 2018 with forecast growth in ad spend of 4.3%. Events will play a key role in 2018, with events such as the Winter Olympics & Paralympics in South Korea, the FIFA World Cup in Russia and the US Congressional elections all expected to stimulate ad spend growth.

· New ad spend growth forecasts show caution in 2017 but improved outlook for 2018.

Global ad spend to hit $563.4 billion in 2017 with digital driving growth.

Global ad spend growth holds at 3.8% amid cautious near-term outlook

· Globally, mobile ad spend is set to overtake desktop in 2017, with digital overtaking TV in 2018

· Innovation in digital advertising (video, social, programmatic) powers spend growth

Despite concerns about the economic impact of Britain’s decision to leave the European Union, UK ad spend growth held up better than expected in 2016 at 6.1%. While there are signs of caution in 2017, with growth dipping to 4%, 2018 is forecast to see growth bounce back to 5.9%. A similar picture unfolds in the United States, where a slowdown to 3.6% is forecast for 2017, followed by a slight improvement in 2018 to 4.0%. The United States also remains the largest market in the world, accounting for 37.7% of global advertising spend in 2017. Advertising spend in emerging markets continues to outpace developed economies. For example, ad spend growth in India is forecast to grow at 13% in 2017, while China is the second largest market in the world by share of advertising spend—remaining the only emerging economy to feature in the top five largest ad markets.

Mobile and digital become the new default settings: Our forecasts show how digital technology continues to disrupt and drive innovation in the way brands connect with their consumers. In 2017, we forecast that advertising spend on mobile will overtake desktop, reaching 56% in terms of share of global Digital advertising spend. In 2018, mobile ad spend will grow further to account for a total of US$116.1 billion. With smartphone subscriptions set to reach 4 billion by 2025 and about a third of consumers reporting that their smartphone is their primary source of entertainment, we can expect to see this trend continue to strengthen.

Furthermore, our forecasts suggest that in 2018 digital will be the top media in terms of global share of spend, taking over television for the first time. Digital’s share of total media spend is predicted to reach a 37.6% share in 2018 (up from 34.8% in 2017), versus 35.9% for television (down from 37.1% in 2017), amounting to a total value of US$215.8 billion. Reflecting the continued disruption by digital technology of the print media industry, Paid Search (advertising within the sponsored listings of a search engine) is forecast to overtake traditional print media (newspapers and magazines) in 2018. Print media has been on a downward trajectory for some years now, but will likely fall to a 13.8% share of total spend in 2018 (down from 15.1% in 2017) while paid search is forecast to grow to 14.6%, up from 13.6% in 2017.

Video, social and programmatic power innovation and growth: While digital ad spend is growing rapidly and set to overtake television, within digital there are a number of new sources of growth that point to the future of advertising. For example, in 2017, online video is set to grow by 32.4%; social by 28.9%; and programmatic (i.e. automated ad buying) by 25.4%. Looking ahead, brands will need to embrace the potential of disruptive technologies such as virtual reality, artificial intelligence and voice activation. However, research suggests that only 8%of brands currently intend to use virtual reality for advertising purposes.

Commenting on the latest ad spend forecasts, Dentsu Aegis Network CEO Jerry Buhlmann said, “We are reaching a tipping point in ad spend now as digital overtakes television, mobile overtakes desktop and paid search overtakes print. Digital and data must now be the default settings for advertisers. Evolving to people-based marketing rather than audience-based marketing and using data to increase addressability is essential for brands to manage tighter conditions in 2017 while positioning themselves for future growth.”

“At the same time, the challenge for brands is to ensure that they are ready to embrace the potential of new innovation. As technologies such as virtual reality and voice activation become more prominent, brands must ensure that they remain relevant by creating new value for their consumers.”

Carat India MD Kartik Iyer commented, “India continues to be amongst the few countries seeing growth rates in double digits. While this may be slightly lower than past expectations owing to various market drivers like demonetization and GST, the growth is clearly expected to continue. Driving this growth is Digital with a growth rate of over 35% which is far in excess of that seen by other more traditional media. And with digital quickly progressing on its path of becoming the Go To media for entertainment, this trend is also expected to continue. Other media like TV and cinema are expected to grow at around 12% while Radio and OOH should see a growth of 10% and Newspapers around 8%.”

“Another medium that is driving growth is that of ambient (at over 15% growth rates). Considering the changing retail environment, the medium, in tandem with digital is becoming pivotal for delivering quality engagement with consumers.”

Latest Reads

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/02/24/piddlite-Screen-Shot.jpg?itok=3PJhDvhT
Dr.Fixit shows how to prevent a leaky house

Most people believe that waterproofing their roof is enough for a leak free home. Dr.Fixit, from the house of Pidilite, has launched a new TVC campaign featuring legendary actor Amitabh Bachchan. The TVC aims to create awareness among home owners about the need for five-point waterproofing.

MAM Media and Advertising Ad Campaigns
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/02/24/Mindshare.jpg?itok=Ax718bFQ
MAM round up of the week

MUMBAI: The world of media and advertising never seems to have a dull day with another action-packed week coming to an end. Amid the yo-yoing fortunes of the industry, the newsmakers held their sway. Indian Television Dot Com brings to you a round up of the most important news events over the past...

MAM Marketing MAM
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/02/23/mindshare_0.jpg?itok=Q3itWdjr
Mindshare South Asia announces agency restructuring, key appointments

Media agency Mindshare has announced an organisation restructure that mirrors the agency’s ambition to become collaborative in client success and navigate its marketing agenda with intelligence and agility.

MAM Media and Advertising Media Agencies
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/02/23/parleg.jpg?itok=F1M9Cgq4
Parle Products eyes China for next phase of growth

MUMBAI: The girl with the glucose biscuit is probably the most iconic image after the Amul butter girl in India. The Parle-G girl is a part of the Parle Products family that has been in existence since 1929, founded by the Chauhan family in Vile Parle, Mumbai. Until a few years ago, as you crossed...

MAM Marketing MAM
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/02/22/timthumb-9.jpg?itok=d_k5pwSq
ABBY Awards 2018 announces jury chairs

MUMBAI:  After announcing the master jury for the creative category, the eminent ABBY Awards that recognises and rewards excellence across advertising, marketing and media has now announced the illustrious jury chairs for the media, broadcaster, publisher, branded content & entertainment,...

MAM Marketing MAM
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/02/22/wat-consult.jpg?itok=n0UvViaJ
WATConsult & TOTAL join hands to launch Ride for Legends

Keeping true to TOTAL Hi-Perf Motorcycle Engine Oil’s brand promise of making your ride enjoyable, TOTAL with WATConsult, the digital and social media agency from Dentsu Aegis Network India, has taken a step forward to launch an initiative to salute unsung legends of the country.

MAM Media and Advertising Ad Campaigns
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/02/22/Bajaj-Finserv.jpg?itok=9OIIR6-7
Bajaj Finserv new ad drives awareness around insurance

MUMBAI: Bajaj Finserv has launched a TVC campaign to drive awareness around width of products offered through its lending, life insurance and general insurance arm. The third phase of ‘Think It. Done’ campaign highlights the set of possibilities in every individual’s life thereby giving a solution...

MAM Media and Advertising Ad Campaigns
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/02/22/Fossil.jpg?itok=Ao2FPVF8
Fossil assigns media mandate to Carat

Fossil Group, a global design, marketing and distribution company that specialises in consumer lifestyle and fashion accessories, has roped in Carat as its media agency.

MAM Media and Advertising Account
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/02/22/hero_0.jpg?itok=0JrQdfeF
Google Pay launched in US, UK; Tez gets new features

MUMBAI: Google is attempting to become a hit in the vast payment space as well. After launching Google Tez in India a while ago, it has come up with a system to rival the world – Google Pay. It comes elements of Android Pay (a Google product) and Google Wallet. The Android app is free to download...

MAM Marketing MAM

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories