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  • Vijesti

    Wüsthof Sharp Systemic Brand Identity with Gigodesign wins Red Dot Award

    How to win a Grand Prix in Cannes?

    The best of Latvian and Estonian advertising

    Enjoy the summer with Cinedays Film Factor 20

    Lokomotiva and SentecaCommerce signed a partnership for 12 European markets

    Virtual Drumming with Fernando Machado, Karolina Galácz, and Thomas Kolster

  • Tema sedmice
    daljinski-naslovnica

    Television Audience Measurement: In Serbia, the media are in a race to the bottom for every extra “click”, while in Croatia HTV has undermined the principle of joint monitoring

    This global pandemic, coronavirus, cuts across all geographical borders regardless of cultures and language. What is the role of Public relations today?

    Slaven Fischer: Creativity doesn’t reside in buildings but in people, no matter where they are. It’s natural for people to work from home.

    Janja Božič Marolt: As in every crisis, there will be a lot of victims and some winners in the communications industry of the region.

    Shortcutting Video: New Study Highlights the Effectiveness of 2-second Ads

    Topic of the Day: Can artificial intelligence replace human intelligence and emotions. Is technology a servant or a master?

  • Intervju

    Miranda Mladin: Keeping consumers’ attention is every brand’s biggest challenge

    Nataša Mitrović: I understood that the Balkans should be my primary target area and that, once I had become a shark in the Balkans, then I could make my way “back” into the big world and swim in the sea with the other sharks.

    Ivan Stanković: I admit to having great fun and enjoying myself enormously working on my show, What I am to you and who I am to myself.

    Scott-Gould-naslovnica

    Scot Gould: Stop doing anything that you do that isn’t valuable, tell everyone about that offering, and don’t stop!

    lazar-naslovnica

    Lazar Džamić: We are experts at preferring the byways, swamps, and chasms, so that we can keep on going in circles, lost in space

    Irena-naslovna

    Irena Kurtanjek: Contributing to the Communities in which we Operate is the Foundation of Nestlé’s Business

  • Kolumna

    Sponsors? What that?

    misa-naslovnica

    Miša Lukić: What can start-ups learn from sperm?

    Do Brands Always Need to Sell Aggressively to Grow?

    Price of Hate

    The Advertising Industry: From Alchemists to Distributors and Back Again

    Milena Garfield: It’s not long since I said: If it ain’t live, it’s dead

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    Diary of a Methuselah #176 Will our industry come out of this better and smarter?

    Diary of a Methuselah #159: Ivo Pogorelić and Zoran Todorović weren’t attractive enough for sponsors in Sarajevo

    Diary of a Methuselah #157: The Young Leaders of Tomorrow, a great event for young people who are ready to assume responsibility for the future of industry

    Diary of a Methuselah #156: I’ve been writing my Diary for three years now, and I don’t think I wrote anything smart

    Diary of a Methuselah #154: Three days at the PRO.PR Conference

    Diary of a Methuselah #153: Portal Media Marketing starts a new life today

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    Mladi liderji – Saša Droftina, Luna \TBWA: Želela bi, da bi se spremenil odnos do pitchev

    Mladi Lideri Kristina Gregorc

    Mladi liderji – Kristina Gregorc, Mercator: Zelo sem optimistična in izjemno ponosna in vesela, da sem del tako velike in uspešne ekipe

    Mladi Lideri

    Mladi liderji – Maša Crnkovič, Futura DDB: Največji izziv je vpeljava podatkov in feedback-a uporabnikov v procese dela

    Young leaders – Aneta Nedimović, New Moment Belgrade: Articulating ideas and the value of those ideas is an art form and a skill

    Mladi liderji – Matjaž Muhič, ArnoldVuga: Želel bi več časa za razmislek, za delo, za raziskovanje

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    Robert Wester: Strategic communications is at the top of the European Commission’s agenda

    Chris Pomeroy: Tourism in 2019 accounted for 1 in 10 jobs on the planet and until now it was resilient to all manner of crisis

    Andrey Barannikov: The role of PR in Russia is changing and becoming more strategically important both for brands and communication agencies

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    Three questions for Francis Ingham, Managing Director of the Public Relations and Communications Association (PRCA) & Chief Executive of the International Communications Consultancy Organization (ICCO)

    3 questions for Svetlana Stavreva, President of the International PR association (IPRA): Today, people are demanding that organizations do what they promised

    Three questions for Petra Krulc, Senior Vice President of Celtra

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Home News

Social media ads to hit US$50bn in 2019

In 2019, social media will catch up with newspapers in terms of adspend

06/12/2016
in News
4 min read
Social media ads to hit US$50bn in 2019 9

Drugi jezik na kojem je dostupan ovaj članak: Bosnian

Global advertising expenditure in social media will grow 72% between 2016 and 2019, rising from US$29bn to US$50bn, according to Zenith’s new Advertising Expenditure Forecasts, published today. Social media advertising will account for 20% of all internet advertising in 2019, up from 16% in 2016. Social media advertising is growing at 20% a year and by 2019 will be just 1% smaller than newspaper advertising (US$50.2bn for social media compared to US$50.7bn for newspapers). By 2020 social media will be comfortably ahead.

Social media platforms have benefitted from the rapid adoption of mobile technology, using it to embed themselves into their users’ daily lives. For many users, social media is the focal point of their social lives as well as their main source of news. Social media ads blend seamlessly into the news feed, and are much more effective than interruptive banner formats, especially on mobile devices.

Online video to overtake radio

Online video advertising is growing almost as quickly as social media, at 18% a year, and by 2019 it will total US$35.4bn across the world, fractionally ahead of the amount spent on radio advertising (US$35.0bn). Online video is also benefiting from the spread of mobile devices, as well as the development of high-speed mobile data connections and improvements in handset displays. It is becoming common for brands to use online video as a complement to television, but for most it does not make sense to use it as a substitute. Even by 2019 online video advertising will be less than a fifth (18%) of the size of television advertising.

Steady expansion in global adspend in 2017, despite political risks and quadrennial comparison

 

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Zenith forecasts global advertising expenditure to grow 4.4% in 2017, the same rate as we estimate for 2016. This is a strong performance, given that the unexpected results of the UK’s referendum on EU membership and the US presidential election have increased political uncertainty and raised the risks of restrictions to international trade. 2017 also faces a tough comparison with the quadrennial year of 2016, when spend was buoyed by the US elections, the Summer Olympics, and the European football championships, as it is every four years.

After 2017 we expect continued steady growth in global adspend – Zenith forecasts another 4.4% growth in 2018 and 4.1% in 2019. Global adspend growth has been remarkably stable since 2010, growing at between 4% and 5% a year, generally at or below the growth rate of global GDP. Before the financial crisis, advertising would typically exaggerate the wider economy, growing faster in times of expansion and shrinking faster during recessions, with frequent changes in year-on-year growth rates. More recently the global ad market appears to have entered a phase of more stable growth.

Global growth supported by continued rise of Asia and recovery in Eastern Europe

Although global adspend growth has been steady, it has been spread unevenly across the world. Adspend is shrinking at 4.9% a year in the Middle East and North Africa amid conflict and low oil prices, while Latin America is growing just 1.7% a year as Argentina, Brazil, Ecuador and Venezuela suffer recession. Asia is leading the way. Growth in China has slowed down markedly over the last few years, but is still 7.0% a year, and as now the second-largest ad market globally (behind only the US), that equates to a lot of extra ad dollars each year. Zenith expects China to contribute 25% of the growth in global adspend between 2016 and 2019. There are also three markets in Asia – India, Indonesia and the Philippines – where we expect advertising expenditure to grow at double-digit rates each year to 2019. These are all substantial markets, ranging in size from US$3.5bn in 2016 (the Philippines) and US$7.5bn (both India and Indonesia). Between them these three markets will contribute 12% of global growth in adspend to 2019.

Advertising in several markets in Eastern Europe – notably Russia, Ukraine and Belarus – suffered from the conflict in Ukraine; the sanctions subsequently imposed between Russia, the US and the EU; and the sharp drop in the price of oil. Adspend shrank 12% across these three markets in 2015, but they avoided collapse and have staged a recovery this year from their reduced base. Zenith forecasts 8% growth across these three markets this year, followed by 9% growth in 2017. These markets will contribute 2% of global adspend growth between 2016 and 2019.

“Social media and online video are driving continued growth in global adspend, despite political threats to the economy,” said Jonathan Barnard, Head of Forecasting at Zenith. “Just four markets in Asia will provide more than a third of global ad growth to 2019, counterbalancing recession in Latin America and the Middle East.”

Tags: AdvertisingZenith
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