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You are here: Home / TV / International ad spend set to increase by 4.5% in 2016

International ad spend set to increase by 4.5% in 2016

4th July 2016 by Jessica Viles

WARC has published figures on how they expect 12 key international markets to grow in 2016, with India expected to have the fastest year-on-year growth at 13%. TV spend is set to grow by 3.5% compared to internet spending which looks to show a 12% growth compared to 2015.

Markets used for the study were India, China, UK, Brazil, US, Australia, Japan, Germany, Canada, Italy, Russia and France. Spend across these markets has been estimated at $414 billion, with the US taking 42% of the spend and China 13%. Although India is forecast to have the greatest growth, it only represents 2% of the total estimated 2016 spend.

Press is the only media estimated to see a reduction in spend, with newspapers and magazines both expecting a 7% drop from last year. However it is mainly the UK driving the decrease in magazines and the US in newspapers, most other countries still expect a slight increase in press spend. The biggest growth in TV spend is in China with a 14% increase, followed by India with a 13% increase.

Brazil has the highest share of spend allocated to TV with 61%, followed by Italy and Russia. India has the highest percentage of press spend at almost 40%, this is followed by Germany with 35% and Canada with 20%. (Source: WARC data 2016)

All Response Media Viewpoint

Advertising spend is always a great indication of developing economies, and with India’s GDP growth set to cross 8% this fiscal year, advertising spend is likely to continue to grow. With internet users in India increasing from 27% to 35% in 2016 (Internet Live Stats), the country’s e-commerce industry is booming and is an interesting market for pure players and we’d expect to see more brands take on the Indian market.

It is also clear that even in markets where press still rules, the growth is starting to slow and more is being invested into broadcast and online media; a trend that we expect to see continue and speed up across most markets in the next few years. With the global increase in advertising spend and reduced dependency on traditional distribution/location restraints, the potential market is getting bigger for advertisers. The key is to find the right mixture of global strategy and local knowledge to execute your brand development worldwide, acquiring customers as quickly and efficiently as possible in these ever-changing markets.

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