Advertising expenditure is set to grow 5% in North America, 6% in the Asia Pacific regions and 2.6% in Western Europe in 2018, according to new research by Warc. Ad spend is likely to benefit from events such as the PyeongChang Winter Olympics, Fifa World Cup and the US mid-term elections.
However, the strongest growth is predicted for Central and Eastern Europe (8.4%) as well as Latin America (7%). Meanwhile, expenditure in the Middle East and Africa will likely drop -4.1%.
James McDonald, data editor at Warc explained:
“2018 should be a stellar year for global advertising, with ad investment set to grow at its strongest level since the post recovery years of 2010 and 2011. Ad investment is set to grow at its strongest rate since the post recovery years of 2010 and 2011. All global regions, with the exception of the Middle East, are expected to register growth, supported by key quadrennial events.”
Last year, global ad spend grew 3% to $546 billion – a decline from the 3.8% increase in 2016.
Mobile advertising continues to boost spending and was up 5.9 percentage points in 2017. It represented a 20.6% share of the market last year at $112 billion.
Warc estimates also indicate that 2017 was the first year for mobile to overtake spending on desktop. Almost half (45%) of mobile ad spend is based in the US.
“Mobile is now a key driver of global growth, and was the only channel to gain share of spend in 2017 – it now accounts for one in five ad dollars worldwide,” McDonald added. “Nevertheless, traditional media still attracts 61% of global ad investment, and TV and out-of-home will be among the main benefactors of increased brand and political campaign spending this year.”