Worldwide Ad Spending Overview
Spending on paid media worldwide will reach $584.14 billion by the end of this year and approach $757.44 billion in 2021, with investments in mobile advertising driving these increases. This year, mobile will account for 24.4% of total ad expenditures.
- China will remain one of the largest contributors to global advertising growth, largely due to advertisers there investing more toward mobile. Total ad spend will climb 14.7% in the country this year to $84.54 billion. To compare, China’s mobile ad market alone is now larger than Latin America’s total ad spend.
- The US, China, Japan, the UK and Germany will continue to be the top five ad markets throughout the forecast period. The US will rank first with $205.06 billion in paid media outlays this year. By 2018, China’s ad spend will surpass that of Japan, the UK and Germany combined.
- North America will continue to be the top ad spending market, with outlays reaching $215.78 billion by the end of 2017—a gain of 5.2% over 2016. This growth will be slightly below the worldwide average of 7.0%, mainly because North America is one of the more digitally mature regions in the world. North America will maintain healthy annual growth throughout the forecast period, with an uptick of 6.1% in 2020, which is when the next US presidential election and Summer Olympics will take place.
- Asia-Pacific will rank second globally in total media ad spend this year, generating $192.64 billion. The region will account for one-third of global expenditures in 2017, just behind North America’s 36.9% share. By 2019, Asia-Pacific will surpass North America in worldwide ad spend ($254.38 billion vs. $238.66 billion) and ad share (37.3% vs. 34.9%). Digital ad growth in India and China will primarily drive this shift, along with contributions from developing markets like Indonesia, the Philippines, South Korea and Vietnam.
- Latin America continues to widen its digital ad landscape—spearheaded by mobile adoption—and recovering commodity prices in the region have also improved consumer confidence in some countries. Ad spending in Latin America will reach $34.35 billion this year, ranking it fourth overall, but the region will have the second fastest growth, at 10.0%. Argentina will see the highest growth rate of those measured in the market due to inflated ad prices. Total ad spend in Latin America is expected to increase 6.8% in 2018, fueled by attention surrounding the World Cup (hosted in Russia).
- Like North America, Western Europe is a digitally advanced region, though it is a more varied economic marketplace. Paid media outlays in the region will increase just 2.5% this year to $101.01 billion. The UK and Sweden will experience healthy ad spend growth of 4.9% and 6.0%, respectively, while other markets will see gains in the low single digits this year.
The next article will share us a detailed analytical data about Digital Ad Spending for next 5 years, stay tuned.