MAM

Zenith revises global ad spend growth forecast upwards

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/smartcrop_800x800/public/images/tv-images/2016/09/13/Untitled-1.jpg?itok=HQM5DFxz

MUMBAI: Zenith Optimedia’s Advertising Expenditure Forecasts is a bellwether for the global ad industry. And the top notch media agency revised its earlier June forecasts for the rest year in an update posted today. Zenith says that global adex will grow by 4.4 per cent to reach $539 billion, much better than 4.1 per cent growth it forecast earlier.  It will expand by 4.5 per cent in 2017, and 4.6 per cent in 2018, better than the 4.3 per cent and 4.4 per cent it had earlier estimated. By 2018 global advertising expenditure will total  $589 billio,  $4 billion more than forecast in June.

The US, the Philippines and Western Europe drive faster adspend growth

This upgrade is mainly the result of stronger-than-expected growth in the US, where a strong labour market has encouraged consumers to increase their expenditure, and advertisers have fought harder for their share of the expanding market. The agency expects US network TV to return to growth this year (at one  per cent) after shrinking five  per cent last year, thanks to new spending by pharmaceutical and consumer packaged goods companies and a strong upfront. Zenith stated that it expects social media to accelerate from 32  per cent growth last year to 35  per cent growth this year, as advertisers take advantage of new formats, such as in-feed video, and the transition to mobile internet consumption continues. Overall the agency forecasts that US ad spend to grow 4.4  per cent this year, compared to the previous estimate of 3.8  per cent.

Zenith has also made slight upgrades to its adspend forecasts for Asia Pacific and Western Europe. It has revised its estimate for APAC from 6.2 per cent to 6.3 per cent and for Western Europe from 3.5 per cent to 3.6 per cent. Its APAC optimism is based on  heavy political spending in the Philippines in the run-up to the May 2016 elections. Its bullishness about Western Europe is courtesy improved conditions in Belgium, Finland, Germany, Italy, Norway, Portugal and Sweden have compensated for the  slowdown in the UK.

Mild weakening of UK ad market after Brexit vote

Although the vote for ‘Brexit’ in the UK’s EU referendum came as a shock to many in the market, so far advertisers have reacted calmly, with no widespread budget reductions. Zenith has forecast a 5.4  per cent growth in ad spend this year, fractionally less than its  5.6  per cent forecast just before the vote. The agency says that its view is that most of the impact that Brexit will have on the UK ad market will happen in the long term.

The UK’s new terms of trade with the EU and other countries – whatever they turn out to be – are likely to restrict flows of trade and investment in comparison with the pre-Brexit status quo, leading to slower economic growth and slower growth in advertising expenditure. In the short term, uncertainty about the consequences of the vote will make companies less likely to invest in new products, and consumers less likely to take on big spending commitments. This could lead to anything from disappointingly slow growth to outright recession. Zenith’s current forecasts assume that economic growth will slow but remain positive, in which case UK adspend will grow 3.4  per cent next year, down from its pre-vote forecast of four per cent growth.

Mobile advertising taking over from desktop even faster than expected

In June, Zenith had forecast that mobile advertising would overtake desktop in 2017.  And it says its position has not changed on this score, excepting that it has upgraded its forecasts for mobile growth for this year (from 46  per cent to 48  per cent) and next year (from 29  per cent to 33  per cent), and  it now expects mobile adspend to exceed desktop by $ 8billion in 2017, up from the $2billion it predicted in June. Zenith expects mobile to account for 60 per cent of all internet advertising by 2018, up from the earlier forecast of 58 per cent.

Desktop to shrink by more than newspapers or magazines to 2018

The agency’s view is that desktop advertising peaked in 2014 at $99 billion and shrank 0.1  per cent in 2015 to $98.9 billion as advertisers switched their budgets to mobile. It now expects desktop advertising’s decline to accelerate over the next few years with spends falling by 0.8  per cent in 2016, 2.9  per cent in 2017 and 7.4  per cent in 2018. Between 2015 and 2018 desktop adspend will have shrunk by $10.7billion, more than the other two declining media – newspapers (which will shrink by $9.6 billion) and magazines ($4.4 billion). Meanwhile mobile adspend will grow by $81.3 billion over the same period, seven times more than the combined growth of television ($7.3 billion), outdoor ($3 billion), radio ($0.9 billion) and cinema ($0.7 billion).

“The global ad market has strengthened over the past few months, thanks mainly to the resilient US consumer,” said Zenith head of forecasting Jonathan Barnard. “So far any impact from the vote for Brexit has been limited, and confined to the UK. We expect the global ad market to strengthen further in 2017 and 2018.”

Latest Reads

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/03/24/Alia-Bhatt.jpg?itok=s3RV8akR
Gionee unveils campaign by Mullen Lintas

MUMBAI: As a smartphone player that harbors ambitions of captivating the populace of this country with its offerings, Gionee has done itself proud by emerging a hot favorite amongst other emerging players. In a short span of time, it has managed to cross over 1.25 crore customers and the numbers...

MAM Media and Advertising Ad Campaigns
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/03/24/oppo-deepika.jpg?itok=nE3rlV_2
Oppo launches F3 Plus, kickstarting 'group selfie' trend

MUMBAI: The ever-evolving global smartphone brand Oppo, kick started the ‘Group Selfie’ trend today by launching the new Selfie Expert F3 Plus, priced at Rs 30,990. The F3 Plus features the brand’s first dual front camera including a first-ever 120-degree wide-angle Group Selfie Camera. The F3 Plus...

MAM Marketing Brands
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/03/24/patanjali-reckitt-hindustan_lever_0.jpg?itok=nAwbIyIu
Biggest advertisers on television during first eleven weeks of 2017

BENGALURU: The Music genre represented solely by Indian music company Super Cassettes Industries (Super Cassettes) was the third largest TV advertiser in terms of ad insertions during the first eleven weeks of 2017. The biggest TV advertising genre is of course a cliché – the FMCG genre followed...

MAM Media and Advertising Ad Campaigns
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/03/23/vivo-ipl17.jpg?itok=iNCfLrxt
Don't miss a single Hot IPL moment

MUMBAI: Hotstar, India's leading video-on-demand platform has launched its Vivo IPL 2017 commercial, a clarion call to get ready for the most avidly watched cricket tournament of the year. Hotstar, which is the exclusive digital streaming partner for Vivo IPL, has kicked off its campaign with a 60...

MAM Media and Advertising Ad Campaigns
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/03/23/fastrack2.jpg?itok=arKksj7y
Fastrack signs multi-year partnership with The Music Run

MUMBAI: Fastrack, an iconic youth accessories brand, has extended its association as the Presenting sponsor of The Music Run™, the fastest growing event in the mass running and entertainment space globally.

MAM Marketing Brands
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/03/23/MIB800.jpg?itok=RHZfbqeL
Audo-visual, electronic media greatest beneficiary of Govt ads in 2016-17

NEW DELHI: A sum of Rs 5.0983 billion was spent on government advertisements through the audio video and electronic media.

MAM Media and Advertising Media Agencies
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/03/23/Ranveer_Singh-DurexIndia.jpg?itok=-tVA_evR
Ranveer Singh continues Durex association with denims

MUNBAI: Bollywood superstar Ranveer Singh reinforced his association with Reckitt Benckiser’s condom brand Durex. The actor has now decided to endorse the rubber maker’s new denim product line - denims. Singh tweeted about the announcement today along with a teaser video from his official handle @...

MAM Media and Advertising Ad Campaigns
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/03/22/Ministry_Ayush-ASCI.jpg?itok=pyr8Xpnq
Over 250 complaints of misleading ads about AYUSH products since Jan 2015

NEW DELHI: The Advertising Standards Council of India (ASCI) referred 263 complaints of allegedly AYUSH products related advertisements to the Consumer Affairs Ministry since January 2015, including seven advertisements of herbal medicines in 2016.

MAM Media and Advertising Media Agencies
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/03/22/Woodland-800x800_0.jpg?itok=v8zCy5jP
Season 2 of Woodland's #AgainstAllOdds digital campaign returns

Mumbai: The second season Footwear and apparel and apparel accessories brand Woodland’s #AgainstAllOdds digital campaign is back with highlighting the stories of people who are pursuing offbeat adventure sports in spite of severe obstacles.

MAM Marketing Brands

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories