Global advertising and marketing spending is expected to rise 4.6% in 2019, according to a new forecast from PQ Media.
The 2018 gain follows follow a 5.5% increase to $1.299 trillion in 2018 and PQ Media is projecting a 5.1% compounded annual growth rate from 2017 to 2022.
Traditional advertising and marketing is expected to rise 0.8% in 2019. That compares to a 10.7% increase in global digital and alternative advertising and marketing.
In the U.S., overall advertising and marketing is projected to rise 4.3% in 2019.
PQ Media pegs advertising and marketing spending in the U.S. at $500.19 billion in 2018, up 5.5% from 2017.
For 2017 to 2022, PQ Media expects U.S. advertising to increase at 4.9% compounded annual growth rate.
Traditional advertising and marketing in the U.S. is expected to fall 0.8% in 2019 after a 1.1% increase to $296.17 billion in 2018. It fell 0.7% in 2017.
Among key growth drivers emerging in the second half of 2018, major TV networks in the United States surprisingly drew higher ad pricing during the annual spring upfront selling period, despite ratings declines and the growth of ad-free streaming, according to PQ Media.
“Counterintuitive as it seems, this year’s TV upfront has reportedly been robust. While the total number of ads sold is said to be flat, ad prices are expected to garner at least high single digit increases,” said PQ Media president Patrick Quinn. “While a good portion of TV dollars are still being allocated for traditional ad pods, more money is flowing into traditional TV and digital ad bundles, product placements and other branded entertainment. As a result, the fastest growing segment of TV product placement is OTT video, as brand marketers seek more opportunities to mitigate the impact of streaming video and DVR use among the 18-34 demographic.”
Digital and alternative advertising and marketing in the U.S. is expected to increase 11.8% in 2019, a slight deceleration from a 12.6 rise to $204.02 billion in 2018.
The Olympics and elections will give both traditional and alternative marketing a boost in 2018, PQ Media said.