Dentsu Inc. Aegis Network Releases "Global Advertising Expenditure Growth Forecast"

The text of the Dentsu Inc. news release distributed on June 16 is as follows.

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June 16, 2017

Dentsu Inc. Aegis Network Releases "Global Advertising Expenditure Growth Forecast"

●Global advertising expenditure is projected to increase by 3.8% year-on-year in 2017 and 4.3% in 2018

● Japan's advertising expenditure is projected to increase by 1.7% year-on-year in both 2017 and 2018

● The digital shift will accelerate further, with digital advertising's share of global advertising spending reaching 37.6% in 2018, surpassing television (35.9%) to become the largest advertising medium

●Within digital advertising, mobile advertising is projected to reach a 56% share in 2017, surpassing PC advertising

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Dentsu Aegis Network (DAN), the overseas headquarters of Dentsu Inc., has decided that starting this year, DAN will produce and announce the "Global Advertising Expenditure Growth Forecast," previously conducted by Carat, a media communications agency under the DAN umbrella.

This forecast, based on data collected from 59 regions worldwide, previously confirmed the previous year's actual figures and provided the current year's forecast in March, followed by a revision and the next year's forecast in September. Starting this year, these periods have been shifted to June and December.

This time, we finalized the 2016 results, revised the 2017 forecast, and projected 2018. This forecast is considered a key indicator for understanding the direction of advertising markets worldwide. This release provides estimates for the total of 59 global regions and for major regions/countries.

■Key Points

<Market Trends>

●Global advertising expenditure in 2017 is forecast to grow by 3.8%, a slight decrease from the previous forecast (September 2016) of 4.0%, reflecting recent economic conditions. For 2018, growth is projected to exceed 2017's rate at 4.3%, driven by the positive impact of major sporting events such as the Winter Olympics and Paralympics in PyeongChang, South Korea, and the FIFA World Cup in Russia.

●The growth rate for the United States, the world's largest advertising market, is projected to be 3.6% in 2017 and 4.0% in 2018, following the 5.0% growth in 2016, a year that included a presidential election. Furthermore, the share of U.S. advertising expenditure in global advertising expenditure is projected to be 37.7% in 2017.

●China, the world's second-largest advertising market, saw robust growth in 2016 with a 7.4% increase in advertising spending. Steady growth is forecast for 2017 and 2018, with increases of 6.0% and 5.4%, respectively.

●India is the only major country projected to achieve double-digit growth in both 2017 and 2018.

●Japan is projected to see stable growth of 1.7% in both 2017 and 2018.

<Media Trends>

● By medium, global digital advertising spending is projected to surpass television advertising spending for the first time in 2018. Digital advertising's share will reach 37.6% ($215.8 billion), exceeding television advertising's share of 35.9%.

● Within digital advertising, mobile advertising is projected to reach 56% of total digital advertising in 2017, surpassing desktop advertising. With global smartphone shipments expected to reach 4 billion units by 2025, this trend is expected to continue.

● Video, social media, and programmatic advertising are driving digital ad spending, with projected 2017 growth rates of 32.4%, 28.9%, and 25.4%, respectively.

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※Dentsu Inc. Aegis Network independently analyzes and estimates advertising expenditure growth rates across 59 regions based on information gathered through its global network. Target media include television, newspapers, magazines, radio, cinema (cinema advertising), outdoor/transportation, and digital.

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Dentsu Inc. News Release
http://www.dentsu.co.jp/news/release/2017/0616-009316.html