The Canadian advertising market will grow 3% to US$8.5 billion this year, according to the latest ad spend forecast from Carat, with advertisers’ confidence improving after what it described as a “challenging” first quarter.
Carat called for further growth of 3% in 2017, fueled by “strong investments” in digital. The increase will bring the value of the Canadian advertising market to US$8.8 billion.
The Dentus Aegis Network unit is calling for Canadian online video advertising to grow 28% in 2016, largely on the basis of improved audience measurement and increased advertiser demand. It is calling for additional growth of 14.7% in 2017.
The report said mobile started to “gain traction” in 2016, with projected growth of 27.4% for the sector as a whole, followed by a 23.2% increase in 2017. According to Carat, the retail and automotive sectors are the sector’s primary growth drivers.
Carat is calling for global advertising to reach US$548.2 billion this year, representing year-over-year growth of 4.4%. The outlook is fueled by a buoyant 2016 marked by “high-interest” events including the UEFA Euro championship, the Rio Olympics and Paralympics, and the upcoming U.S. presidential election.
Sanjay Nazerali, Carat’s global chief strategy officer, said spending spikes around these big-ticket events was a trend that would likely continue, but said it was important for advertisers to consider the growth of data and digital and the opportunities they provided to leverage event associations.
The report called for “particularly robust” growth in North America (5%) – where the presidential election alone is expected to generate $7.5 billion of incremental spending – and a strong 6.2% recovery in Russia that would counter lower expectations in certain markets.
Digital is the leading advertising medium in 13 of the 59 markets included in the study, with projected growth of 15.6% in 2016 and 13.6% in 2017. Digital will account for more than a quarter (27.7%) of global ad spending in 2016, increasing to 30.2% in 2017 – fueled by what the report characterized as “high demand” for mobile, online video and social media.
TV boasts an industry-leading 41.1% of global advertising investment, with high-interest media events contributing to its position. The report called for moderate growth of 2.3% in 2017, causing its total market share to fall to 40.3%.
Print is expected to decline a further 5.5% in 2016 and an additional 4.3% next year, while Carat called for growth for radio (2.4%), out-of-home (3.5%) and cinema advertising (4.5%).