Total global advertising and marketing revenues are on pace to grow 4.9% to a staggering $1.363 trillion in 2019, the strongest growth rate in an odd year since before the Great Recession, according to new research released by PQ Media.
The market research firm’s “Global Advertising & Marketing Revenue Forecast 2019-23” covers some 100 digital and traditional media platforms in every major media market worldwide.
Global growth slowed down in the second half of 2019, following a strong first-half in most major markets, due to the lack of major political dollars and international sporting events such as the World Cup, along with slowing economic growth due in part to trade tariff wars that have sparked recession fears among some economists. But momentum across the globe is expected to pick up by 5.9% in 2020 for the fastest growth rate in over 10 years, despite those recession worries.
PQ says the increases it’s forecasting for 2020 will be fueled by “potent growth” in spending on various mobile channels, digital product placement and content marketing, influencer marketing, and over-the-top (OTT) streaming video advertising, as well as record media outlays related to the World Cup, Summer Olympics and the U.S. presidential election.
U.S. Remains Largest Media Market
Looking back at 2018, global ad and marketing revenues grew 5.5% to $1.299 trillion in 2018, with the advertising sector up 5.1% to nearly $600 billion and marketing up 5.9% to almost $700 billion and accounting for 54% of total media revenues worldwide. The U.S. remained the world’s largest media market, generating revenues of $502.01 billion in 2018, up 5.9% from 2017. Digital and alternative media grew 12.9% to $204.51 billion last year in the U.S., and commanded 40.7% of total media revenues.
Across the world, digital and alternative media revenues grew 11.6% to $496.23 billion in 2018, accounting for 38.2% of the total haul. Online search remained the largest overall digital channel at $52.80 billion, while smart tech marketing grew the fastest, surging 441.6%, according to PQ Media. Internet advertising was the largest overall digital ad platform at $105.94 billion, while mobile advertising was the fastest growing, up 27.5%.
Of the 40 digital and alternative media channels tracked, 28 posted double-digit growth in 2018. Each of the top 10 fastest growing segments worldwide were mobile media channels, including mobile smart tech, coupons, social media, video, audio, gaming, and email.
Despite that growth, some major advertisers are reevaluating their digital media investments due to concerns around privacy, fraud and transparency. “While digital and alternative media operates in a complex ecosystem that includes alarming fraud levels, shifting social media algorithms and disorderly measurement systems, brand marketers will continue to invest in media strategies and tactics that can prove engagement with elusive non-Boomer target audiences,” said PQ Media President Patrick Quinn. “As they seek to navigate the changing media landscape, brands are turning to digital media on the premise that it will offer higher consumer engagement, such as mobile video, audio and games that create consumer buzz; influencer and content marketing to control the conversation; and product placement and OTT advertising to capitalize on hot new streaming video programs.”
Turning to traditional advertising and marketing, on a global basis, revenues increased 2.1% to $802.83 billion in 2018, as broadcast TV remained the largest ad platform, generating $176.12 billion, while cable TV was the fastest growing, up 5.4%. Direct marketing was the largest overall traditional marketing platform at $220.36 billion and public relations was the fastest growing, up 9%. Print ads declined for the ninth consecutive year, but at the slowest rate since 2014. Traditional out-of-home media growth remained solid.