Innovative Digital Formats to Drive Global Ad Growth to 2019

Most of this growth is coming from social media which will grow at 20 a year and online video which will grow at 21 a year amp160Social media is central to many of its usersamp8217 digital lives amp160itamp8217s where they plan their social life read their news and document their activities amp160and brands can use it to communicate with them very effectively amp160And online video is much better at conveying brand values than traditional display formats like banners These are no longer mutually exclusive categories indeed video advertising is now central to the growth strategies of most social media platformsPaid Search and Classified are Still Growing But are Lagging BehindPaid search was the largest Internet advertising channel until 2015 when it was overtaken by display amp160Much of its recent growth has come from innovations in mobile and locationbased search and future growth will come from adapting search ads to voiceactivated personal assistants like Siri and Alexa amp160Expenditure on paid search totaled US78bn in 2016 and we forecast 10 annual growth to 2019 when it will reach US103bn Growth in paid search will therefore lag behind growth in total internet advertising which will grow at 12 a yearClassified advertising amp160advertising on dedicated web pages without editorial content often for cars houses and jobs amp160was an important part of the early Internet but its share of total Internet expenditure has been shrinking for many years as users have turned to free listings auction sites and other substitutes amp160In 2016 advertisers spent US17bn on Internet classifieds and we expect this total to rise by just 7 a year to US21bn in 2019Television and Online Video Consolidate Their Lead in Brand AdvertisingWe distinguish between television and online video advertising because they are distributed differently generally sold differently and categorized differently by thirdparty agencies that monitor advertising expenditure amp160But for many consumers they are beginning to blur together as smart TVs and other devices deliver Internet content to householdsamp8217 main TV sets amp160Advertisers are also finding that it makes less and less sense to plan television and online video separately they work best as complements rather than substitutes amp160Television supplies reach while online video offers targeting and personalization amp160Together they are becoming more important than ever to advertisers seeking to build brands amp160Stripping out classified and search amp160which are essentially directresponse channels amp160television and online video accounted for 485 of expenditure on brand advertising in 2016 up from 437 in 2010 and we forecast their market share to rise to 493 in 2019Global Adspend to Grow 40 This YearWe forecast that global advertising expenditure will grow 40 to US558bn by the end of 2017 amp160This is down fractionally from the forecast of 42 that we made in June amp160The stronger Eurozone economy has yet to feed through to advertising and we have downgraded our forecasts for seven Eurozone markets since then amp160Mexicoamp8217s television market has been disappointingly weak the extended period of mourning for King Bhumibol Adulyadej has led to a second year of decline for Thailand and Malaysiaamp8217s recovery from the downturn of 2016 has been less rapid than we hoped These disappointments have been partially offset by the boost provided by Canadaamp8217s healthy economy to its ad marketamp160and Russiaamp8217s return to full growth after the oilprice crash and imposition of trading sanctionsNext year we forecast 42 growth in global adspend boosted by the Winter Olympics in Korea the football World Cup in Russia and the midterm elections in the USZenith Celebrates 30 Continuous Years of Advertising ForecastsThe first edition of the Advertising Expenditure Forecasts was published thirty years ago in September 1987 amp160The report was originally published by Saatchi ampamp Saatchi before moving over to Zenith soon after it was created in 1988 amp160Back then the global ad market was a lot smaller amp160we estimated it at US187bn or a third of the current level amp160and it was overwhelmingly dominated by the USamp160which accounted for 59 of total spendamp160compared to 35 today amp160The birth of Internet advertising now nearly 40 of the market was still seven years in the future amp160But not everything changes even then we were looking forward to a boost from the 1988 Olympics and US elections expected rapid growth in Asia Pacific outside Japan and worried about economic problems in Latin Americaamp8220Internet display is coming into its own as a brandbuilding media powered by social media and online videoamp8221 said Jonathan Barnard Head of Forecasting and Director of Global Intelligence at Zenith amp160amp8220But the distinctions between online video and traditional television are being eroded and the two work together much better than they do separatelyamp8221amp8220Internet platforms are continually innovating to provide advertisers with new ways of communicating with consumersamp8221 said Vittorio Bonori Zenithamp8217s Global Brand President amp160amp8220But newer doesnamp8217t always mean better and agencies must use all the data and technology available to them to determine how to combine new and old media to tell brand stories most effectivelyamp8221About ZenithZenith is The ROI agency amp160We blend data technology and brilliant specialists to scout out new opportunities solve complex challenges and grow our clientsamp8217 businesses amp160Zenith is part of Publicis Media one of four solution hubs within Publicis Groupe Euronext Paris FR0000130577 CAC40 and has offices within Publicis One amp160We have over 5000 specialists across 90 markets amp160We are experts in communications andamp160media planning content performance marketing value optimisation and data andamp160analytics amp160Zenith works with some of the worldamp8217s leading brands including AstraZeneca Coty Farmers Insurance GeorgiaPacific Hospital Corporation of America JPMorgan Chase Kohlamp8217s Sonic Toyota Verizon Wireless and 21st Century FoxThe opinions and points of view expressed in this content are exclusively the views of the author andor subjects and do not necessarily represent the views of MediaVillagecomMyersBizNet Inc management or associated writers

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Innovative Digital Formats to Drive Global Ad Growth to 2019

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