Zenith: SMBs Are Contributing to Bigger Ad Spend in the U.S.
As the first quarter of 2019 comes to a close, Zenith has updated its outlook for global advertising. At the end of last year, Zenith analysts predicted a 4.0% increase in the global advertising market. The revision released this year now calls for a 4.7% growth rate in total global advertising. In addition, the company’s analysts believe 2020 and 2021 will have advertising increases of 4.2% and 4.1%, respectively.
Not surprisingly, the huge demand for digital advertising is driving the growth. At the end of 2018, the anticipated global ad spend on digital was $231 billion. The new figure is $246 billion. Analysts believe digital growth will amount to about 10% this year. In addition, digital will now amount to 49% of all ad spending.
The U.S. market will experience a 5.0% ad market increase this year, versus the original Zenith projection of 2.9%. At this point, we account for 37% of the global advertising market.
Projected Changes by Ad Format
The percent changes in the ad market between last year and 2021 (projected) show the strength of digital on a global basis. (Note that the 2018 figures are in parentheses.)
- Newspapers (8.1%) 6.2%
- Magazines (4.4%) 3.1%
- TV (31.9%) 28.5%
- Radio (5.9%) 5.5%
- Cinema (0.7%) 0.9%
- Out-of-home (6.5) 6.4%
- Internet display (21.3%) 26.7%
- Internet paid search (17.3%) 18.8%
- Internet classified (3.7%) 3.9%
The huge projected increases in display and paid search are driving analyst optimism. The experts point to SMBs as one of the sources of these ad spending increases. As local coffee shops and shoe stores spend more on platforms like Google and Facebook, they now own a bigger share of the ad market. Previously, they may have been under-spending on traditional mass media.
Media sales reps can find opportunity in the local market by helping these SMBs get the most out of their spending on big sites. We all know it's not easy for novices to navigate the complexity of marketing on these sites. To learn more about which consumers take action after seeing ads in search engine results or on social media check out AudienceSCAN at AdMall from SalesFuel.com.
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