Dive Brief:
- In a new report titled "U.S. Ad Spending: eMarketer's Estimates for 2016," it is estimated U.S. ad spending will increase 5.1% this year reaching past $192 billion, a slower growth rate than expected due to cuts in TV and radio spending.
- Part of the increase in spending is based on two major cyclical events – the ongoing presidential election and the upcoming Summer Olympics in Brazil.
- Other recent research from Publicis’s ZenithOptimedia anticipated a global advertising increase of 4.6% this year, up from 3.9% in 2015.
Dive Insight:
Like a number of recent projections, eMarketer sees digital surpassing TV for the first time next year. This year TV will receive 36.8% of ad dollars compared to 35.8% for digital, but digital is increasing at more than six-times the rate of TV
Both eMarketer’s U.S. and ZenithOptimedia’s global ad spending projections point to mobile as a driver of digital ad spending’s rapid growth. The ZenithOptimedia study found that mobile ad spending should increase 128% through 2018, accounting for a $64 billion growth.
"Consumers are using their mobile devices to consume media in a place where they previously have never done so before, and in times and places they wouldn’t previously have access to," Jonathan Barnard, ZenithOptimedia’s head of forecasting, told Ad Exchanger. "It’s creating the opportunity to communicate more cheaply with consumers."
