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

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

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January 16, 2018

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

― 2018 growth rate at 3.6%, total advertising expenditure at $589.5 billion ―

Dentsu Aegis Network Ltd. (Headquarters: London, UK), the overseas headquarters of Dentsu Inc., has compiled its forecast for global advertising expenditure growth(*) based on data collected from 59 countries and markets worldwide.

The global advertising expenditure growth rate is expected to decline in 2017 compared to 2016, due to slightly slower growth in most regions except Central and Eastern Europe. However, for 2018, growth is projected to exceed 2017 levels, reaching 3.6%, with total advertising expenditure forecast to reach $589.5 billion. This growth is driven by improved performance in North America (which accounts for one-third of the global advertising market), Asia Pacific, and Latin America.

This growth rate primarily reflects the continued expansion of digital advertising and contributions from major events such as the 2018 PyeongChang Winter Olympics and Paralympics, the 2018 FIFA World Cup Russia, and the U.S. midterm elections.

<Global Advertising Expenditure Growth Forecast>
Looking at individual countries, growth trends in 2018 are not uniform. For example, significant growth is expected in the United States, Germany, and India, while slowdowns are projected in the United Kingdom, Russia, and China. Japan is expected to see 1.6% growth in 2018, reflecting its moderate and stable economic growth.

<Global Advertising Spend Share Forecast by Medium>
The shift of advertising spending to digital is expected to continue. Global digital advertising spending is forecast to maintain double-digit growth in 2018 at 12.6%, following 15.0% growth in 2017. Online video advertising and social media advertising are the key drivers, with projected growth rates of 24.5% and 23.5% respectively in 2018. Furthermore, digital advertising for mobile devices is expected to surpass that for desktop PCs in 2017 and reach $121.1 billion in 2018.
As a result, digital advertising spending will account for 38.3% of total global advertising expenditure in 2018, surpassing television advertising spending (35.5%) for the first time.

Dentsu Inc. Aegis Network recognizes that the market is undergoing change and expects that competition between existing and emerging players in many markets will continue to drive innovation in advertising technologies, creating new sources of advertising expenditure growth.

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*Global Advertising Expenditure Growth Forecast:
Dentsu Inc. Aegis Network (DAN) independently analyzes and estimates advertising expenditure growth rates for 59 countries and markets based on information gathered through its global network. Target media include television, newspapers, magazines, radio, cinema (cinema advertising), outdoor/transportation, and digital.
Dentsu Inc. (DAN) publishes an English-language report on global advertising expenditure growth forecasts titled "DENTSU AEGIS NETWORK AD SPEND REPORT (January 2018)".
For details, please visit http://build.falcon.io/-KuKl1hcdlh8O4tMhaRJ/.

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Dentsu Inc. News Release
http://www.dentsu.co.jp/news/release/2018/0116-009427.html