Dentsu Aegis Network has upgraded its ad-spending forecast for this year to 3.9% -- up from January’s estimate of 3.6%. Total global expenditure is now expected to reach $613.5 billion.
The company cited the upcoming FIFA World Cup as a greater growth stimulus than previously anticipated.
In the U.S., spending will grow 3.4% to reach $217.3 billion -- boosted by Winter Olympics advertising, which brought in an estimated $1.6 billion, per the new forecast.
Mid-term political spending will also contribute to the U.S. growth total. Dentsu Aegis notes that more than $2.8 billion is predicted to be spent on the upcoming mid-term races.
China also got an upgrade in the revised forecast. Growth there is now expected to be 6.5% -- up from the previous 5.4% estimate. Ecommerce platforms Baidu, Alibaba and Tencent are expected to contribute 80% of this year’s growth in the country, Dentsu Aegis said.
As previously forecast, digital is expected to overtake TV for the first time -- reaching 38.4% of global share, ahead of TV’s estimated share of 35.5%. In 21 out of the 59 markets tracked by the advertising and marketing firm, digital will be the leading ad channel this year.
Also for the first time, one quarter of global ad spend will be delivered via mobile devices.
“In the context of synchronized economic growth across the U.S., 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,” stated Jerry Buhlmann, CEO Dentsu Aegis Network.