Global media agency Carat is expecting big increases in spending on digital media to push total ad expenditures higher in 2016.
Carat predicts a gain in global ad spending of 5% in 2016 but lowered its estimate of 2015 growth to 4.6% from 5%. Total spending is expected to reach $540 billion, the agency says.
In the U.S., Carat sees 4.7% in growth in 2016. The agency left its 4.6% estimate of 2015 U.S. growth unchanged.
Carat says that in 2015, ad spending rose 4.9% in the U.S. and 4.6% worldwide.
Digital is becoming a bigger factor in the ad market. Carat expects it will account for a 25.9% share of all ad spending in 2016, up from 21.7 in 2015. The agency says digital media is outstripping its previous projections and is now on track to rise 15.7% to $17.1 billion in 2015.
Mobile ad spending is rising 50% and online video is jumping 21.1% in 2015.
Television continue to have the largest share of advertising dollars globally, coming it at 42.7% in 2014 ad growing by more than 3% annual in 2015 and 2016.
“Carat’s latest advertising forecast gives us increased optimism for the outlook for global advertising spending. With harder times behind us, negative growth markets are pleasingly now a minority, and collectively we can look ahead to 2016 with positive growth predicted for all key markets,” Jerry Buhlmann, CEO of Carat parent Dentsu Aegis Network, said in a statement. “The strength of Digital continues to dominate discussions and the new distribution of spending. With a quarter of the global population now owning and relying on their smartphones daily, they are our second brain in our hands. Mobile dominates the way consumers access information, view content, browse products and purchase goods and this is reflected in the innovative services and approach we are discussing with our clients.”