Mobile advertising boosts the global advertising market

How will the advertising market develop over the next three years?Following growth of 5.1% in 2014, ZenithOptimedia expects growth of 4.9% in 2015 and 5.6% in 2016. In its latest "Advertising Expenditure Forecast", the global media agency group also looks ahead to 2017 for the first time, when growth will slow slightly to 5.2%. This is due to the three major cyclical events that will give the advertising market a special boost in 2016: The Olympic Games, the presidential elections in the USA and the European Football Championship.The most important driver of the global advertising market is mobile, which will attract over half of the additional advertising dollars between 2014 and 2017. In the same period, investments in mobile advertising will grow by an average of 38% annually thanks to the continued increase in the use of mobile devices, improvements in advertising formats and variety, and technical innovations in the targeting of cross-device campaigns. In the USA, it will account for 6.2 percent of the advertising pie this year. At the same time, Americans spend 23.3 percent of their media consumption time on mobile devices. Interestingly, it is social media that is now driving mobile display advertising, and the development in Europe is characterized by the crisis in the east and the recovery in the south. The southern eurozone, which lost around 15 percent of its advertising investment between 2007 and 2013, is recovering in 2014 and will grow by 5.4 percent in the coming years, above the eurozone average of 2.0 percent. However, the tensions between Russia and the West and the conflict in Ukraine are having a clear impact: Russia's advertising market is only growing by 1.8% this year, with 1.1% forecast for 2015. In Ukraine, the advertising market will shrink by as much as 49% and by a further 10% in 2015.ZenithOptimedia estimates growth of 2.8% for the Swiss advertising market in 2014. "The biggest drivers for us were TV with growth of 4.7% and online with an increase of 11.4%," explains ZenithOptimedia CEO Beat Krebs. The sustained momentum in the TV sector is particularly noteworthy: "Customer demand is unbroken despite the panel-related decline in measured ratings - but this is also driving up prices," explains Krebs.print remains under pressure. While advertising sales for magazines continued to decline in 2014, as in previous years, newspapers saw a slight increase of 1.2 percent. "I assume that this trend will not be confirmed and that we should prepare ourselves for a decline again next year. Readership will continue to decline and so will investment. The next few years could therefore be rather difficult for publishers," fears Krebs, although ZenithOptimedia expects the overall advertising market to continue to grow in the coming years, with online and TV in particular developing positively, as well as out-of-home advertising. An increase of 1.8% is forecast for 2015, while the media agency anticipates growth of 1.7% for both 2016 and 2017.ZenithOptimedia has been producing quarterly forecasts since 1987. They serve the advertising industry as a valuable barometer for planning its media activities and are also used by the media, advertising agencies, management consultants and analysts. Since June 2012, the data on past and future net advertising investment worldwide has been available for the first time in an online database at www.adforecast.com are available. Media splits and annual comparisons of all countries surveyed can be displayed and downloaded in charts and diagrams. The media types can also be compared with each other. The fee-based study "Advertising Expenditure Forecast" can also still be ordered at www.zenithoptimedia.com.