Advertizing world market

2020: Expenses on digital B2B-advertizing will grow in the USA in 2020 by 22.6%

It is much more than growth rates of the advertizing market in general (1.7%). About the fifth part of all expenses on digital B2B-advertizing will receive LinkedIn.

2019

Rise of Internet advertizing to $332 billion, TV to $192 billion

Main article: Internet advertizing (world market)

Advertizing in printed media is quickly reduced by the USA

Data for 2019

Zenith Media: In 2021 52% of advertizing expenses will go to the Internet

In 2021 Internet advertizing will occupy more than 50 percent of advertizing expenses in the next three years, Zenith Media in October, 2019 predicts.

Dentsu Aegis Network: The world market of advertizing will grow in 2019 by 3.8% to $625 billion

According to the experts a global network of Dentsu Aegis Network, provided in January, 2019 and based on given the analysis of 59 markets, in 2019 the global growth rate of advertizing will reach 3.8%. As a result, the total amount of investments will be $625 billion the Pacific Rim and North America will become the main regions of growth in 2019 on which 42% and 30% of a world gain is necessary. The contribution to global growth in Western Europe will be 15%, in Latin America — 10%, and Central and Eastern Europe — 4%.

Advertizing expenses in digital will grow by 12% in 2019, having reached $254 billion and will for the first time exceed a mark of 40% of a world share. Digital channels of communication will become leaders on 26 of 59 analyzed markets. And, for the first time the USA, the Czech Republic, Malaysia and Singapore will join the list of the countries with the leading positions in digital.

The prompt growth rate of advertizing on mobile devices (19.2%) will proceed, especially big share will be occupied by video formats (20%) that is caused by the growing popularity of viewings advertizing on smartphones. The forecast of growth of social networks in 2019 remains essential (18.4%). In China more than three quarters of expenses on Digital Signage in 2019 will fall on mobile devices for the first time.

Pro-grammars advertizing will grow by 19.2% in 2019 as the model begins to be implemented on TV and DOOH.

According to forecasts, expenses on TV commercial will drop by 0.5% in the conditions of the competition to Netflix company which offers users usluguvideo on demand. Nevertheless the television will continue to implement innovations, especially in the USA — offering new advertizing formats, a reduced advertizing weight and solutions for attribution. There is a probability that expenses on TV-advertizing will increase by 2020 by 1.6% again.

It is predicted that in 2019 the share of radio stations will grow by 1.1% and will reach $37 billion — 6% of the total costs. It is expected that promptly developing technologies — such as voice assistants and smart columns, will stimulate use of an audioformat.

Traditional advertizing in printed media will continue to lose positions (level of decrease in reading newspapers — for 7.2% and magazines — for 7% in 2019) as focus to be displaced on digital.

Outdoor advertizing will continue to grow (for 4% in 2019), having reached 6.3%, and growth will stimulate use of DOOH.

2018

The largest markets of advertizing and revenues of Google

The advertizing revenue of Google in 2018 made 116.3 billion dollars that exceeds the total costs of advertizing in all countries, except the USA. In 2018 Google started working 32% of net world income from Digital Signage and 38% of income from Digital Signage in the USA.

Income from advertizing of Google in comparison with the total costs of advertizing in the countries of the world in 2018

The largest advertisers of the world

At the beginning of February, 2019 the Kantar Media agency published the rating of the world's largest advertisers. In a research it is reported that the first place on budgets on advertizing was saved by producer of consumer goods Procter & Gamble.

The CNBC TV channel paid attention to the 72.5 percent growth of advertizing expenses of Amazon that became the greatest indicator in the leading ten. The online retailer actively invests in promotion of the devices and services, despite negative attitude of the founder and head of the company Jeff Bezos to advertizing.

The largest advertisers given to Kantar Media

Bezos called advertizing "the price which you pay when your product is not remarkable". However, then the CEO reviewed the point of view.

Kantar Media monitors advertizing on television, digital platforms, street boards and different platforms, except social networks.

In 2018 Amazon entered the five of the largest advertisers with the budget in the amount of $1.8 billion whereas in the 2015th the company did not enter even in top-20.

In time of Superboula-2019 (a final game for a rank of the champion of National Football League of the USA) who passed on February 3, 2019,  showed to Amazon  at least two rollers. Placement of one 30-second video during this sports event costs $5.25 million or about $175 thousand in a second, CNBC notes.

For 2018 follows from the financial statement of Amazon that according to the results of this 12-month period marketing costs of the company reached record $13.8 billion, having increased by 37% of rather previous year. These expenses made 5.9% of revenue of Amazon that was not the last 18 years.

In the marketing budget "advertizing and other expenses on promotion of goods" (for example, the commission for each attracted client) in the amount of $8.2 billion at the end of 2018 against $6.3 billion in the 2017th are put.^[1]

Zenith: Russia will be in ten countries on the level of growth of advertizing till 2020

Russia took the ninth place among the countries on which the main growth of advertizing costs during the period between 2017 and 2020 is necessary. The USA whose market for these years will grow by $19.7 billion will become the prime vendor of new advertizing budgets. On the second place there will be China with $16.9 billion. Other companies in the top ten will not gather also $5 billion during this time, but Russia nevertheless will be among leaders - on the ninth place from $1.848 billion. Such data the Zenith agency provided^[2] in the forecast in March, 2018].

Russia, however, will remain outside the list of 10 largest advertizing markets in which the USA, China and Japan will also remain leaders. All advertizing market will grow by 4.6% in 2018, to $579 billion. Analysts improved the forecast - in December they expected growth by 4.1%. From new advertizing costs till 2020 which will globally make $77 billion the lion share is necessary on the mobile Internet - $72.6 billion. TV-advertizing will grow by $6.9 billion whereas costs on the desktop Internet even decrease - by $2.4 billion.

2017

The world's largest advertisers —  Ad Age

In December, 2018 the professional edition about   the advertizing Ad Age published the annual rating of the largest advertisers. Samsung Electronics rose to the first place.

The advertizing budget of the South Korean producer in 2017 made $11.2 billion that is 13% more, than the previous year. So heavy expenses Samsung on advertizing are caused by need to recover reputation after scandal of 2016 when flagman smartphone Samsung Galaxy Note 7 was withdrawn from the market because of potential of explosion.

Besides, Samsung it is necessary to compete with the Chinese smartphone manufacturers of Xiaomi, Meizu, Huawei whose share in the world grows not without the aid of advertizing.

The companies with the largest advertizing expenses for 2017, data  of Ad Age

According to Thomson Reuters, Samsung spends for advertizing more than others in percentage terms from revenue: in 2017 the share of promotional costs and marketing made 5.4%. At the end of 2018 expenses in the amount of $14 billion are planned.

According to  Ad Age estimates, the Procter & Gamble company which in 2016 won first place in the list of the largest advertisers rolled down on the second position with expenses a year later in $10.5 billion which practically in accuracy correspond to an indicator of year prescription.

On growth rates of advertizing expenses there was no equal Alibaba Group at which costs jumped by 105%, to $2.7 billion 


The companies with the most fast-growing advertizing expenses for 2017, data  of Ad Age

The rating  of Ad Age is based on assessment of the money spent for advertizing campaigns in different formats including promotion in points of sale.

Most of all in 2017 enclosed the companies offering products for the house and personal leaving in advertizing — $51.6 billion. The automobile companies with result in $47.1 billion, on the third — representatives of show business and media ($29.6 billion) were at the second place.^[3]

Zenith: Eastern Europe and Central Asia are quickly recovered after recession of 2014-2015

The markets of advertizing in Eastern Europe and Central Asia were generally quickly recovered after recession of 2009, and then continued healthy growth rates within the next several years. However in 2014 the Ukrainian conflict seriously wagged on the market of advertizing in the region, Russia suffered from sanctions and an output of the international investments. These shocks were aggravated with sharp drop in oil prices to which share 70% of the Russian export in 2014, and devaluation of the Ukrainian and Russian currencies fell.

As a result advertizing expenses were cut down for 0.6% in Eastern Europe and Central Asia in 2014 and for 8.0% in 2015. The most affected advertizing markets began to be recovered in 2016, and this recovery continued in 2017, having exceeded expectations of analysts^[4]. According to the report of the agency which is released in March, 2018, advertizing budgets grew by 12.9% in 2017 and will annually grow for 8.8% till 2020 - Eastern Europe and Central Asia will remain the most fast-growing regional bloc during this period.

Forecast of Zenith: The global advertizing market will grow to $559 billion (for 4.2%)

Global advertizing costs will grow by 4.2% in 2017 – to $559 billion. Speed will fall a little in comparison with 2016 when growth was 4.8%, according to data of Zenith. However last year several loud events, including elections in the USA, the Olympic Games in Rio, the football championships in Europe were necessary. Events added about $6 billion to the global volume of advertizing in 2016. Taking into account it basic growth will actually be 3.6% in 2016 and 5.4% in 2017.

In the markets in Latin America and also in Central and Eastern Europe recovery is observed. Brazil left the most long recession, since 1930th years while Argentina, at last, deals with inflation. The market of Central and Eastern Europe gains steam after the conflict and sanctions struck Russia and the connected markets in 2015. Zenith prognoziruyetrost advertizing in Latin America this year for 4.1% in comparison with last year for 0.2%, and growth by 7.3% in Central and Eastern Europe – it is 4.1% more, than last year.

The Pacific Rim becomes the world leader. Advertizing expenses will grow by $30 billion during the period here between 2016 and 2019 that will provide 43% of global growth. The region will enter nearly 50% more advertizing budgets, than North America which will grow for $20 billion (29% of world growth). Western Europe will show growth by $8 billion (11%), Central and Eastern Europe – 4 billion (6%), and Latin America – 3 billion (4%).

By 2019 on the Pacific Rim 33.4% of global advertizing in comparison with 32.1% in 2016 is necessary. It will be the first case when more than a third of total amount in the world falls on this territory. The Asia-Pacific market of advertizing will still be less advertizing market of North America on which in 2019 36.3% of global advertizing will fall, but the gap between them is narrowed. In 2013 the market of advertizing in North America was for $35 billion more, than in the Pacific Rim, but by 2016 the difference decreased to $27 billion, and it is expected that in 2019 it will fall to $18 billion.

As for advertizing categories, advertisers expect growth in categories of media and entertainments, they are followed by pharmaceutics and health care and also alcohol. The greatest concerns are caused by telecommunications - after a meal and drinks and FMCG (except for food).

Dentsu Aegis Network: forecast of development of the global advertizing market of 2017-2018

Growth of advertizing expenses remains at the level of 3.8% against the background of reserved short-term forecasts On the basis of the data obtained in 59 markets of North and South America, the Pacific Rim and the region of EMEA (Europe, the Middle East and Africa), experts of Dentsu Aegis Network predict more moderate growth of advertizing expenses at the global level: 3.8% instead of 4.8% in 2016. Nevertheless, the situation should be settled by 2018: growth at the level of 4.3% is expected. Actions and events of the international scale will promote gain of the industry in 2018. Among them: The winter Olympic and Paralympic Games in South Korea, the FIFA World Cup of FIFA in Russia and congressional elections of the USA.

Despite concerns of rather negative impact of "Brexit" on economy, advertizing expenses in Great Britain exceeded forecasts of 2016 – growth is expected at the level of 6.1%. Despite of the reserved forecast of 2017 and the predicted decrease to 4%, next year there can be a rebound to growth indicator in 5.9%. The similar picture is observed in the USA: in 2017 growth will decrease to 3.6%, and in 2018 will increase to 4%. The USA remains the largest world player who provides up to 37.7% of global advertizing investments. Level of advertizing expenses in emerging markets continues to advance developed economies. For example, in 2017 the growth of advertizing expenses in India for 13% whereas China - the second in value market in the world on an advertizing share indicator - remains the only developing economy which enters the five of the largest advertizing markets is predicted.

Mobile and digital – the main sources of growth

In 2017 digital remains the main driver of innovations in the relations between brands and consumers. Experts believe that advertizing expenses will outstrip a desktop in volume of global advertizing investments in the mobayl, having made 56% - $116.1 billion in terms of money. The number of mobile subscribers will reach 4 billion by 2025. About a third of consumers report that the smartphone is their main source of content. Specialists predict further strengthening of this trend.

Besides, in 2018 digital will become the main media, having for the first time overtaken TV on the volume of advertizing investments. It is expected that the share of digital will reach 37.6% (34.8% in 2017) that $215.8 billion are equivalent. The share of TV will make 35.9% (37.1% in 2017). The contextual advertizing in 2018 will outstrip traditional printed media (newspapers and magazines). The print is on a descending trajectory several years, its share will fall up to 13.8% of the total amount of expenses in 2018 (15.1% in 2017) while the contextual advertizing will grow to 14.6% (13.6% in 2017).

Innovations and development of video, social networks and programmatic

In the conditions of rapid increase in expenses on digital advertizing which can shortly be compared to expenses on promotion TV the sphere of digital actively develops at the expense of the new directions which define the future of advertizing. Online video will grow by 32.4% in 2017, social networks – for 28.9%, programmatic (the automated advertizing purchases) – for 25.4%. Brands need to consider the potential of the innovation formats, including virtual reality, artificial intelligence and the systems of voice actuation in advance. However, apparently from a research, only 8% of all companies intend to use virtual reality in the advertizing purposes today.

Record advertizing expenses in Great Britain £22.2 (+4.6%)

Advertizing expenses in Great Britain in 2017 grew by 4.6 percent and made record £22.2 billion.

2015

The overview of PwC for 2015-2019

Overview of show business and media: the forecast for 2015-2019 (on the world and in Russia) for June, 2015.

• Presentation

Forecast: In 2017 Russia will not be in top-10 the advertizing markets

In June, 2015 the ZenithOptimedia agency published the report containing the forecast for volumes of the markets of advertizing in the world for 2017. Earlier, in December, 2012 analysts of the same company prophesied to Russia the 7th place in the list of the leading countries on promotional costs at the end of 2015. According to the forecast of ZenithOptimedia of December, 2013, Russia had to take the 9th place at the end of 2016.

In the new report analysts predict decrease in the market of advertizing in Russia at the end of 2015 for 16.5%, mentioning considerable reduction of price of oil. According to the company, promotional costs in Ukraine in 2014 were reduced by 51.2%, and in 2015 will drop by 42.4%.

• Presentation

2012: The forecast of ZenithOptimedia for 2013-2015

In December, 2012 the media communication network of ZenithOptimedia published the next forecast of development of the world advertizing market. According to experts, in 2013 growth of global advertizing costs will increase by 4.1% (that slightly less, than in the October forecast of the company). In total global advertizing expenses in 2013 will make 518 billion dollars. The most part of positive dynamics, as well as in previous years, is necessary on emerging markets which will grow on average by 8% while developed will show increase only by 2%.

According to ZenithOptimedia, online advertizing will remain the most dynamically developing type of media that is caused by the continuing growth of social networks and interest in Internet video. So, the global digital-sector will grow in 2013 by 14.6% that is nearly nine times faster than dynamics for traditional communications (1.7%).

Regions

North America remains the leading region on advertizing costs. This year the market will reach volume almost in 172 billion dollars with growth in 4.1% in relation to a previous period here.

The second position is held by the Pacific Rim from 140 billion and the predicted growth in 6.1% (and without slowly recovered Japan this indicator is even higher – 7.9%).

The third place is taken by Western Europe from 107 billion, at the same time the loudspeaker in "advertizing Schengen" negative (-2.2%).

The volume of advertizing expenses in Central and Eastern Europe – and including, – several times less than these digits (a little more than 26.7 billion dollars) also concedes in Russia to Latin America which is on the fourth position (nearly 38 billion). Growth rates at the East European advertizing are small too – only 2.2% this year though indicators over the certain countries strongly differ: EU Member States show recession whereas Russia and Ukraine quickly enough go uphill.

Experts note that in general the world market continues to be recovered slowly after almost ten-percentage failure in 2009; however crisis in the Eurozone continues to have a negative impact on all world economy: import of the European countries falls, and the risk of a sharp failure in economy installs uncertainty in the largest advertisers.

Except instability in the eurozone, the "fiscal break" in the USA caused by cancellation of laws on tax benefits and about budget control and also growth of a political conflict in the Middle East remains the main risks of 2013: war can fuel increase in prices for oil that will lead to a new round of stagnation.

However, most of economists agree on opinion that in the next three years the global economy will develop anyway. The IMF predicts that dynamics of growth of world GDP will increase from 5.6% in 2012 to 6.9% in 2015. Proceeding from these data, ZenithOptimedia foretells that global advertizing expenses in the next years will also grow.

If to speak about regional blocs in which growth rates are similar in dynamics then in the eurozone of ZenithOptimedia selects four countries – Portugal, Ireland, Greece and Spain: all of them suffered from crisis more seriously than the others. The advertizing markets of these countries should be reduced by 15.3% at the end of 2012 and for 4% in 2013.

Block Severnaya and Central Europe (The Czech Republic, Poland, Hungary, Great Britain, Germany, France and so forth) develops more slowly than Eastern Europe led by Russia and Ukraine. The majority of these countries are in the eurozone or have close economic relations with it. In this region advertizing expenses will be cut down for 0.2% in 2012, but in 2013 will a little grow (by 0.8%).

Eastern Europe and Central Asia continue fast recovery after crisis of 2009. In this block advertizing expenses will grow by 10.7% in 2012, and still will accelerate in 2013 – up to 11.7%.

As for other blocks, in Japan recovery after last year's accidents continues: growth of advertizing expenses in 2012 will be 3.1% here, and in 2013 - 1.4%. In the developed Asia-Pacific countries (Hong Kong, Singapore, Australia, New Zealand, South Korea) growth will reach 2.3% in 2012 and 4% in 2013. In other countries of the Asian region in 2012 average growth at the level of 10% will be observed.

Despite sprint dynamics of developing countries, the USA remains the country bringing to global market of most of all advertizing budgets.

Media

Internet advertizing continues to increase the share in the total advertizing costs. From 2002 to 2012 its share grew by 15%. At the same time, the volume of newspaper advertizing dropped by 12%, and in magazines – for 5%.

In 2013 expenses on online content will for the first time exceed promotional costs in newspapers, and in 2015 digital will bypass cumulative indicators of all printing.

The TV commercial share at the global level is stabilized after slow growth in the last decades. So, in 1980 the share of TV-advertizing made 31% of the total costs on all media, in 1990 – 32%, in 2000 – 36% and 39% in 2010. Experts believe that its share will a little decrease from 40.2% in 2012 to 40% - in 2015^[5].

Share of media in the total costs of advertizing (%)

The forecast till 2015

By estimates of ZenithOptimedia (December, 2012) in 2012-2015 the deposit of economy of the USA to the advertizing industry will be about 28%. In total about 44% of new advertizing investments will fall to the share top-7 the countries with the greatest deposit.

In the list of the largest advertizing powers in the next three years it is necessary to expect changes: only six of ten leading countries will remain in the first cohort. So, by 2015 Brazil will bypass Great Britain on the volume of the advertizing market and will rise on the fifth place, and Russia will exceed South Korea, France and Australia and there will be the seventh.

According to the forecast of ZenithOptimedia, to 2015 global share of Internet advertizing will grow to 23.4% whereas expenses on communication through printing are cut down on average for 1% a year.

See Also

• Mobile advertizing (world market)
• Advertizing (market of Russia)

Notes