Attendees at the Cannes International Festival of Creativity may have reason to celebrate even if they don’t bring home a Lion.
That’s because, according to a Dentsu Aegis Network biannual forecast released last week, global ad spending is projected to rise more quickly than previously estimated. According to the report, global ad spending will see growth of 3.9 percent for 2018, compared to 3.3 percent in 2017 and ahead of the 3.6 percent previously forecast for the year in January, for a total investment of $613.5 billion.
Dentsu Aegis Network cited a larger than expected boost from the FIFA World Cup as among the factors. The 2018 Winter Olympics and Paralympics also contributed to a boost in ad spending.
Digital is predicted to overtake TV for the first time globally, accounting for 38.4 percent of global share to 35.5 percent for TV. Mobile, meanwhile, will account for a quarter of spending (25.2 percent) for the first time.
In the U.S., spending is expected to increase 3.4 percent to reach $217.3 billion, which Dentsu Aegis Network attributed to a stronger U.S. economy and an anticipated boost from the midterm elections.
North America and Asia Pacific were the two major regions for growth, accounting for 32 percent and 41 percent of the global growth, respectively.
“In the context of synchronized economic growth across the US, Europe and Asia, these figures point to a more positive outlook today than at the beginning of the year and represent a modest but encouraging source of optimism. We are seeing upward revisions in most key markets, with emerging economies such as India showing high rates of growth,” Dentsu Aegis Network CEO Jerry Buhlmann said in a statement.
“The U.S. economy is growing strongly as economic stimulation and tax cuts filter through. Spend in China continues to grow at pace, though driven almost entirely by the ecommerce platforms Alibaba, Tencent and Baidu,” he added. “Digital remains the dominant growth area with 25 percent of global advertising spend expected to be delivered through mobile for the first time. Digital is now the leading form of advertising in 21 out of the 59 markets we track.”