Global adspend growth expected to double in 2016

Rosie Baker
By Rosie Baker | 21 December 2015

Global ad spend growth is set to double in 2016, with a rise of 4.4% expected by Warc. Globally, adspend growth increased 2.2% this year.

Warc's International Ad Forecast accounts for 12 markets, that comprise two-thirds of all advertising expenditure tracked by Warc.

Seven of those 12 countries are expected to see an improved outlook, including Australia, which was marginally revised upwards 0.3 percentage points (pp).

The outlook for the US and China has not been upgraded and Brazil’s outlook was cut 2.3pp as it faces a recession – despite the hosting the Olympics.

Unsurprisingly, online ad spend is expected to see the greatest growth and become the biggest advertising medium, rising 12.2% next year following a 17.4% gain this year.

TV ad spend fell 2.5% this year but a 2.9% rise is forecast for 2016.

Spend on print and newspapers will continue to fall next year with 7.7% and 6.5% falls forecast respectively. Cinema is forecast a 2.2% rise, OOH a 2.3% rise and radio is forecast a marginal 0.3% boost.

India (13.0%) and China (6.9%) are predicted to record the strongest annual increases in adspend followed by the UK (5.7%).

Adspend across these 12 markets is expected to hit US$414bn – not yet recovering the pre-GFC levels.

James McDonald, data analyst at Warc, said: "The stimuli of major sporting and political events underpin our 4.4% growth forecast for global adspend next year. Digital growth is expected to remain in the double-digits, and ad tech is evolving rapidly. Programmatic trading is becoming commonplace, galvanising spend on so called traditional media such as outdoor, radio and indeed TV. More is being spent to engage with the ‘always on’ consumer, and this has led to internet becoming the largest ad medium among our 12 major markets.”

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