Carat, the media agency, just released its Global Ad Spend Report, which highlights the steep rise in global digital ad spending.
According to the report, the overall share of digital ad spend is set to grow by 29.3% in 2017. Mobile is the dominant driver this year at 37.9%, but will be outpaced by online video in 2017 at 31.2% year-on-year growth.
Mobile and online video lead ad spend growth
The report broke down findings further by territory. US digital ad spend is set to grow 15.9% this year, with mobile clearly leading the year-on-year rise.
Mobile leads US ad spend rise
Mobile search in the UK is predicted to rise by 11% this year, whilst desktop search will grow at a lower rate of 8%. Mobile video growth is set to reach 31% in the UK in 2016.
The study also confirmed that paid search spending was dominated by mobile as more consumers were making search queries on the go using their smartphones. Paid search is forecast to grow 10.6% in 2016 and 10.3% in 2017. Carat expects paid search to reach a share of 12.3% of total advertising spend this year.
The top five Western growth markets are all strongly driven by mobile ad spend.
Western Europe digital ad spend
Jerry Buhlmann, CEO, Dentsu Aegis Network, says:
“Carat’s latest advertising forecast and its first analysis of the 2017 landscape give us reinforced optimism for global advertising spending. Whilst economic volatility has impacted some major markets, solid growth has been maintained globally, with stability foreseen for this year and next. The strength of Digital continues to be the dominant element in the growth of the global advertising expenditure whilst TV spend remains as the foundations of our industry. As advertising becomes more data-driven and complex, it’s crucial to move rapidly to navigate and meet the needs of the digital economy and this is reflected in the innovative capabilities and approach we provide to our clients.”