Carat, a global media network, published its updated forecasts for worldwide advertising expenditure in 2014 and 2015, with market optimism demonstrated through strong global and regional forecasts.
The Asia-Pacific and Latin America are expected to outperform global predictions, with growth rates for 2014 of 5.4 per cent and 12.1 per cent respectively, and the only regions to see double digit growth in some markets.
Globally by media, digital outperforms previous predictions for 2014 with year-on-year growth forecast at 16.1 per cent. Digital will also increase its total share of spend, reaching 20.5 per cent in 2014 and 22.6 per cent next year, when it will outpace the combined magazines and newspaper global share for the first time. Whilst the steady decline in print is expected to continue, all other mediums are predicted to achieve year-on-year growths of approximately 3-5 per cent in 2014 and 2015.
Highlighting the scenario in India, the report states that the elections have driven buoyancy in the market and there is an upswing in the mood of the country. Overall advertising spend will see a spike in 2014 driven by huge spends by the political parties.
The advertising market will see a 8.7 per cent year-on-year growth in 2014. Growth is to continue into 2015 at 9 per cent as advertisers embrace new technologies within digital. The Cricket World Cup is also predicted to bring about higher investments from advertisers.
Print media was the biggest beneficiary of the political party spends, and unlike other markets, Newspaper spends will grow by 6 per cent in 2014. Newspapers are still the most popular media type in India with 37 per cent share of total media spending.
Meanwhile, digital media spend in India is the third most popular media type behind newspapers and TV, and it is forecast to grow by 33.2 per cent this year with growth driven by mobile and programmatic trading in the Indian market. The report states that advertisers are increasingly thinking 'mobile first.'
Mobile internet access is almost equal to desktop internet usage in India, and the importance of mobile in the coming years will grow. With the upcoming launch of 4G services across India later this year, the opportunity for advertisers is huge.