IHS Forecasts Ad Revenue Growth Hit $532 Billion in 2016

IHS Technology, Friday, December 30, 2016 

Data released Friday by IHS Markit from its annual Global Advertising Trends report from IHS Technology’s Advertising Intelligence Service expects online to surpass television advertising by 2020.

While TV still remains number one media accounting for $192 billion, or 36%, of global revenue, Online follows at No. 2 with nearly $160 billion or 30% of the global revenue. IHS estimates online will surpass TV by 2020. Print holds the No. 3 spot attributing $101 billion; radio, No. 4 attributing $47 billion; out of home, No. 5; and cinema, No. 6.

Events like the Olympics, the European Football Championship, and the U.S. presidential election drove 2016’s global advertising revenue growth to $532 billion, up 7.1% compared with the previous year.

Advertising revenue accounted for 0.69% of global GDP in 2016, up from 0.66% in 2015, per the report.

The United States took the top ad spend with $179 billion in 2016, up slightly from $172 billion in 2015. China came in at No. 2 with nearly $97 billion, Japan followed with nearly $30 billion, and the United Kingdom with nearly $25 billion.

Asia stepped in as the fastest growing region. Africa accounted for four of the five fastest growth countries. In China, online advertising revenue will be 17% greater than TV advertising revenue, a difference of $15 billion.

The top 10 markets contributed 75% to the global revenue in 2016, down from 76% in 2015.

Israel, Switzerland and the United States came in as the top advertising spend per person. The most mature markets are mostly high GDP per capita markets, according to the IHS Technology report. Israel topped the list at $719, followed by Switzerland and the U.S. China generated $65 per person in advertising, despite being the second largest advertising market. Zimbabwe was the last on the list with $0.002 ad revenue per person per year.

MediaPost.com: Search Marketing Daily

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