Global ad market set for best growth in six years, despite Brexit, Brazil woes | M&M Global

Global ad market set for best growth in six years, despite Brexit, Brazil woes

The international advertising market is set to experience its strongest growth in six years, according to the latest forecast by IPG Mediabrands agency Magna Global.

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Magna’s spring update predicts that the global ad market will grow by 5.4% in 2016 to $480bn, following a strong first quarter in “most markets”.

It would mark the strongest growth for the industry since 2010, when global advertising grew by 8.5%. However, Magna expects less positive news in 2017, predicting growth of 3.1%.

The sunny outlook has been driven by a better-than-expected performance in key markets like the US and China, with the annual growth figures for both countries revised upwards to 6.2% and 8.4% respectively.

Advertising in Western Europe will be up 3.8% year-on-year, on the back of the Euro 2016 football tournament, but assuming the UK does not choose to leave the European Union next week.

In Asia Pacific, media sales will reach $139bn, up 6%, but the landscape in Latin America is more challenging, despite the upcoming Rio 2016 Games, with the market only growing by 3.3%.

The report also claims that digital media advertising sales will grow 15% in 2016, matching TV for the first time – both have a market share of 38.5% – and exceeding it in 2017.

Vincent Letang, EVP, director of global forecasting at Magna, and the author of the report, said: “Advertising sales were dynamic in the first quarter of 2016, for both television and digital media, in many large markets [including the US, UK, Germany, Italy and France].

“The mixed economic outlook and political uncertainty [offered by Brazil and ‘Brexit’] is likely to gradually reduce the level of growth in the remainder of the year and in 2017, but full-year 2016 global growth should remain the strongest in six years thanks to cyclical events and stronger television pricing.”

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