Global marketing spend set to exceed $1tn in 2017, says Group M

Global marketing spend is set to exceed $1tn (£756bn) in 2017, Group M predicts.

Global marketing spend set to exceed $1tn in 2017, says Group M

The This Year, Next Year report says that Group M expects adspend to grow by £552bn, or 4.3%, in 2017.

It comes despite WPP network slightly downgrading expected adspend growth for 2016 to 4% from 4.5%. The slowing growth in China and Brazil was the main reason for the change.

Growth in China was revised down to 6.6% in 2016, from the previously expected 9.1% rise. It predicts China’s adspend to grow by 7% in 2017.

Group M China put this down to the "slowdown in fixed investment and profits affecting consumer demand".

In Brazil, adspend was revised down from 7% to 1% because of the continuing recession, increasing unemployment, and political crisis.

Adam Smith, futures director at Group M, explained that the greater trend that came through during the research was the high interest in automation in digital.

He told Campaign: "It’s the first time I’ve had a comprehensive interest in programmatic.

"The idea of automation has great risks and possibilities. It provides a common platform for data management but equally it opens up risks around viewability and fraud."

For the UK, Group M said there is no impact from the referendum to leave the European Union, although companies are expected to invest less over the next six months.

Smith added: "There is no evidence of a Brexit-driven recession at the time of this writing, and though some have deferred 2016 advertising investments, worst-case we still see that UK advertising growth will reach 4.5% this year, propelled exclusively by the growth of digital.

"Our base case remains 6.3%, which we will revise as usual in November."

Digital adspend continues to grow at scale, however this is slowing. It was 18% in 2015, 14% in 2016 and expected to reach 12% in 2017. However, 99% of all net ad growth will be digital in 2016.

In traditional media, TV remains resilient, the report said. However it added that print is losing the most share.

Dominic Proctor, president for Group M Global, said: "The impact of media consumption migrating to digital platforms, and the flow of advertising investment with it, must not be underestimated by advertising clients.

"This fragmention of billions of consumer impressions across thousands of platforms demands the use of data and technology to create bespoke and meaningful targted audiences for brands.

"This is the transition from media planning to audience planning and the reason why Group M continues to focus investment in talent and technology around data and analytics.

"We see this as crucial to creating sustainable marketplace advantage for our clients, and it’s an important dialogue we’re having which is increasingly and appropriately focused on performance versus the commodity pricing of media."

Subscribe to Campaign from just £57 per quarter

Includes the weekly magazine and quarterly Campaign IQ, plus unrestricted online access.

SUBSCRIBE

Looking for a new job?

Get the latest creative jobs in advertising, media, marketing and digital delivered directly to your inbox each day.

Create an Alert Now
Share

1 Meet the new breed of ad agency chiefs

A new wave of first-time CEOs are opting to do things differently in an evolving landscape. They discuss the business model of the future with Jeremy Lee.

Case study: How 'This girl can' got 1.6 million women exercising
Shares0
Share

1 Case study: How 'This girl can' got 1.6 million women exercising

"This girl can" was based on a powerful insight: that the fear of judgement by others is the primary barrier holding women back from participating in sport.

Just published

More