Spend in the global ad market has been tipped to rise 5.4% year on year over the course of 2014, boosted immensely by growth for online budgets.
Data within ZenithOptimedia’s Advertising Expenditure Forecasts suggests that worldwide spend will hit $1.5 billion as companies attempt to piggyback on the lure of World Cup 2014.
FIFA’s event is expected to deliver large television audiences, but it is thought that advertisers will spend most of their money on promoting their services online through the likes of social media and display, causing an overall rise in spend.
ZenithOptimedia sees a productive summer ahead for the global ad market as football fever engulfs all the major continents. The World Cup is expected to add as much as $500 million to budgets in the Latin America market this year with the likes of Argentina, Chile and hosts Brazil preparing to do battle on the field.
Western Europe also has a number of nations competing in Brazil, which could be the reason for a 2.2% rise in ad budgets across the continent.
This year’s festival of football has also been tipped to inspire an increase in activity in markets without a high following for the sport. North America, for example, could see a $300 million rise in ad spend year on year due to the sporting summer.
As has so often been the case in recent years, web technology is thought to be another major driving force behind the industry’s growth, with more companies placing their faith in online to deliver.
Several online channels could see a growth in spend over 2014 as internet advertising budgets expand at a rate of 16.2% compared to 2013.
ZenithOptimedia envisages annual growth of 15.8% for traditional display spend, 23.8% for online video and 29.9% for social media.
Overall, though, it is video advertising that will remain the most dominant, with television and online video joining forces to hold 41.3 % of the global ad market in 2014, up from 41.2% from last year.
Mobile advertising is also expected to take from this year, growing by an average of 49% a year between 2013-2016, while desktop internet advertising will expand at a much slower rate of 9% per year.
Such trends could become commonplace over the next few years if ZenithOptimedia’s report is anything to go by. In the document the 5.4% rise in global ad spend for 2014 is followed by a 5.7% increase in 2015 and a 6.1% uptick in 2016.