Global advertising revenue is expected to grow to $590 billion in 2017 from $532bn in 2016. The strongest growth will come from the Middle East and Africa, followed by Asia Pacific, where India and Indonesia will steal the show. This is according to the figures released by IHS Markit based on the annual Global Advertising Trends report from IHS Technology’s Advertising Intelligence Service.
Developed markets are likely to slow down in an “event-light”, following the high spending for the Olympics and the US elections, the IHS Technology report said.
Online will continue to be the fastest growing medium at 14 percent, however, a slowdown in the revenue growth of Google and Facebook, is likely as the two are not attracting TV budgets to their online video offerings as fast as they had hoped.
“The advertising industry is about to turn the corner thanks to the global economy getting back on track,” said principal analyst, IHS Technology, Eleni Marouli, who is also the report’s author.
Advertising revenue will grow 7.1 per cent in 2016 to $532bn. Strong growth in global real private consumption also buoyed advertising revenue as brands tried to take advantage of heightened consumer spending. Advertising revenue accounted for 0.69 per cent of global GDP in 2016, up from 0.66 per cent in 2015, the report said.