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China and India to be among top contributors to global adspend, says Zenith

China and India are expected to be the second and third largest contributors to global ad spend growth between 2018 and 2021, adding US$16 billion and US$5 billion respectively, according to estimates from media agency Zenith .

The latest edition of Zenith’s Advertising Expenditure Forecasts also predicted that stronger than anticipated internet advertising will grow total global adspend by 4.7% in 2019. The number has been revised from a previous prediction of 4%, made in an earlier edition of the report in December 2018.

Forecasts for 2020 and 2021 put the growth rate at 4.6% for both years as opposed to a previous estimate of 4,2% and 41%.

Internet advertising is expected to hit US$329bn in 2021, accounting for 49% of all global adspend.

The growth in internet advertising will be led by online video and social media at 13%, even as paid search and classifieds grow at the lower rate of 7%.

Zenith’s head of forecasting and director of global intelligence Jonathan Barnard said: “Internet advertising will exceed a quarter of a trillion dollars for the first time this year. The speed of internet adspend growth continues to surprise us, as small businesses and digital challengers provoke established brands to up their game.”

Zenith’s global head of strategy Ben Lukawski added: “Brands with more than a niche market share still need interruptive advertising at scale to acquire new customers.

“As more communication takes place online, the challenge for brands is to build distinctiveness through frequent short-term exposure, rather than the occasional but longer exposures common to traditional media.”

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