Worldwide advertising spend is predicted to grow 3.6% in 2018, up from 3.1% in 2017. According to new research by the Dentsu Aegis Network based on data across 59 markets, digital media is set to increase 12.6% to $220.3 billion this year. This represents a slow-down from 17% in 2017.
Meanwhile, mobile ad spending is set to reach $121.1 billion in 2018. Desktop continues a downward trajectory at -1.5% since 2016 compared to 8.2% in mobile gains since 2016.
In terms of advertising format, paid search leads digital ad spending with a 40% share. Voice-activated devices in particular are helping spur this growth.
Video and social are also boosting digital advertising growth at 24.5% and 23.5% respectively. These formats are largely driven by greater mobile device penetration.
The report also predicts programmatic ad spend to increase 23%.
“The latest ad spend forecasts show a market in transformation, but not recession,” explained Jerry Buhlmann, CEO of Dentsu Aegis Network. “The challenge for brands is to navigate an uneven economic outlook alongside a rapidly evolving tech & innovation landscape. In many markets, disruptive innovation – from mobile, voice activation and new ad tech players – is still providing new sources of growth and we forecast this trend will continue into 2018.”
“Succeeding in this environment requires global consistency through appropriate platforms and systems, while also the flexibility and agility to work with a wider ecosystem of tech-enabled solutions. It demands a relentless focus on understanding the consumer, using data to reach real people, driving relevance, addressability and business growth.”