Monday, 19 December 2016 06:36

Digital’s share of ad spend continues to rise

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TV continues to capture the majority of global ad spend, but digital’s share is still growing TV continues to capture the majority of global ad spend, but digital’s share is still growing
Digital media remains a big driver of growth in global advertising and is likely to capture 33% of the global advertising pie in 2017. This is according to a forecast by GroupM, the world's largest advertising buyer. TV continues to attract the largest share of ad spend, although this will decrease slightly from 42% in 2016 to 41% in 2017. “Digital keeps surprising us,” says Adam Smith, a senior GroupM executive. “What's surprising is [that] the bigger the appetite for digital is, the bigger it gets.” He believes that digital’s growth is being driven by big increases in paid search, e-commerce and advertising on mobile devices. “If you look at the growth trajectory of digital, if it carries on taking a point or two of share from other media. Is TV threatened and, if so, what can we do about it?” asks Smith. He says more data and technology should be introduced to support TV marketing – including creating addressable ads that allow marketers to target consumers by household. Many TV executives in the US have argued that momentum is swinging back towards television as marketers become more wary of digital advertising problems such as click fraud. However, it appears that this may not be the case. Total advertising spend worldwide for 2017 is predicted to be US$547-billion, an increase of 4,4% on 2016, notes GroupM. The US and China will be responsible for half of the net growth next year. Emerging market India continues to be one of the fastest growing countries in the world when it comes to ad spend, with the country's ad growth forecast to be almost 13,8% this year and 12,5% for 2017.
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