Magna Global has forecast that global advertising will grow by 3.7% to $505 billion in 2017 and highlighted that digital media are now taking more revenue than TV, the first time this happened. 54% of the digital advertising sales revenue is coming on mobile devices. Magna believes that TV ad sales will be down by 1% this year, the first drop since 2009. One reason for the lower global growth was the lack of a global sports event such as the Olympics or Fifa World Cup and next year the Winter Olympics in South Korea and the Fifa World Cup in Russia will boost growth again to 4.5%.
Central and Eastern Europe has seen the strongest growth this year and the weakest growth in the top 10 markets is in the UK (+1.9%), the U.S., (+1.6%) and France (+0.4%). Germany is expected to grow by 2.2% and Turkey by 8% despite the political and economic uncertainty. APAC will see 5.6% growth, with China the largest market at $62 billion, but Japan will remain the third largest market globally at $39 billion.
Online advertising will exceed $200 billion for the first time.
Out of home is expected to remain resilient this year, with 4% growth. In the US OOH will grow by 2% to $7.9 billion as the growth from tech brands (e.g. Google, Apple, Hulu and Netflix) has been offset by a drop in OOH spending by automotive and food & beverage, which both experienced double-digit declines.
Analyst Comment
There wasn’t any data released on DOOH, but Magna is planning a special report shortly. An exec summary of the report can be downloaded.
