China will remain the world’s largest advertising market in 2016 according to This Year, Next Year report by GroupM. GroupM predicts the growth rate of China’s advertising market will decline from predicted 8.7% to 7.8% this year and will drop slightly from predicted 9.6% to 9.1% in 2016.
Global ad spends will grow by 3.4% to US$17 billion this year and increase to US$22 billion at an annual growth rate of 4.5%, both lower compared to data released this year earlier (4.0% in 2015 and 4.8% in 2016).
Brazil, Russia, China and India are expected to account for 23% of global advertising spends in 2016. This ratio has been increasing steadily since 2000 and is expected to increase one percentage point every year till 2020.
The growth rate of Indian advertising market will be predicted to increase by 2 percentage points to 15% in 2016. Ad spends in Russia will be 2% growth next year after experiencing a short-time sharp recession in 2015. Brazil will decline by 2 percentage points to 7% in ad appends in 2016 as continuous shrinking in the unemployment and household expenditure.
The Euro region accounts for only 11% of total global advertising spends currently. French advertising spends are expected to maintain zero growth in 2016. Ad spends growth rates in Germany and Italy are expected to increase by only 1% to 2%. The United Kingdom has become the world’s mature advertising market with the fastest growth rate and is expected to be the third largest contributor to the global advertising market.
China’s traditional advertising spends have declined in recent years by and large while it declined 7.3% as of 30 September this year out of expectation. In terms of media types, the advertising budget tends to shift to digital media.
Digital global advertising spends is expected to grow by 14% in 2016, accounting for 31% of global advertising spends as GroupM predicted. Digital ad spending growth will slow down next year compared to forecasting 17% growth rate in 2015, however, it will still maintain a strong growth momentum.
Also read: China Social Media Marketing Trends in 2015