Dentsu Aegis Network

Dentsu Aegis Network has downgraded its advertising expenditure forecast for this year. Based on data from 59 markets, it now predicts global growth of 3.6% this year to $609.9 billion. That compares with its January forecast of 3.8%, but Wednesday it cited slowing growth in China and trade tensions as factors contributing to the revised forecast.

The news is better for the U.S., where the ad market remains the leading contributor to global ad spend at $223.8 billion, with 3.1% growth predicted for 2019, representing a slight increase from the 3% growth predicted for the market in January, according to MediaPost’s coverage of the forecast. That is in addition to 3.4% growth in the U.S. in 2018, with an additional +3.6% forecast for 2020 “with its multiple cyclical events including the Olympics and U.S. elections,” the report notes.

On a worldwide basis, mobile is the fastest-growing platform within digital, and is forecast to grow a marked 21.4% in 2019. That is being driven by increasing consumption of video on mobile with online video set to grow 20.5% in 2019. Spending at TV is expected to recede slightly this year, -0.1%, with a return to modest growth in 2020, +0.6%, thanks to continuing penetration of smart TVs.

Traditional print continues to get hit hard, with newspapers -7.7% and magazines -7.4%. Out-of-home media will see an upward growth revision from January to 4.3%.

In the U.S. alone, digital will grow 12.5% in 2019, with almost 40% of the total U.S. ad spend going to digital. Social video is driving growth, with live video growing in the social space.

And by category, the U.S. auto industry remains the largest advertising sector in 2019, with 1.2% year-over-year growth to $15 billion. Retail is second, with 2.5% growth predicted this year.