Global Advertising Revenue to Hit $532 Billion in 2016 as TV’s Reign Nears Its End, IHS Markit Says

Four out of the five fastest growing markets are in Africa; Revenue
from online advertising will overtake TV within the next five years

LONDON–(BUSINESS WIRE)–Big brand budgets and quadrennial events such as the Olympics, European
Football Championship and US Presidential Election will drive 2016’s
global advertising revenue growth to $532 billion.

The new figures released by IHS Markit (Nasdaq: INFO), a world leader in
critical information, analytics and solutions, are from the annual Global
Advertising Trends report
from IHS
Technology’s Advertising Intelligence Service.

“The advertising industry is about to turn the corner thanks to the
global economy getting back on track,” said Eleni Marouli, principal
analyst, IHS Technology, and report author.

Advertising revenue will grow 7.1 percent in 2016 to $532 billion.
Strong growth in global real private consumption also buoyed advertising
revenue as brands tried to take advantage of heightened consumer
spending. Advertising revenue accounted for 0.69 percent of global GDP
in 2016, up from 0.66 percent in 2015, the report said.

Top 10 markets

The top 10 markets make 75 percent of the global revenue figure. “The
top 10 markets still account for the lion’s share of global advertising
revenue,” Marouli said. “However, their collective power has dropped due
slowdowns in the Chinese and Brazilian economies, which were the rising
stars in the top 10 in 2015.”

The top 10 accounted for 76 percent of global ad revenue in 2015; it
dropped to 75 percent in 2016.

Fastest growing region: Africa

Four out of the five fastest growing countries in 2016 were in Africa.
“Ghana and Kenya have been high on the list of many media companies’
expansion plans, and we are seeing growth above 20 percent,” Marouli
said. “These markets are still growing from a low base, but the sheer
size of their populations means they are becoming interesting targets
for big brands.”

TV remains number one, but online will overtake by 2020

TV was the number one medium globally for advertising revenue,
accounting for $192 billion, or 36 percent, of global revenue. “Despite
the incredible growth of online giants like Facebook, Google and
Snapchat, the TV market continues to benefit from big brand budgets,”
Marouli said. “Quadrennial events such as the Olympics, the European
Football Championship and the US elections helped keep TV on top.”

However, revenue from online advertising will overtake TV within the
next five years. “In some countries such as the UK, online already
accounts for almost 50 percent of total advertising revenue and will
only keep getting stronger” Marouli said.

In 2016, online advertising will account for almost $160 billion, or 30
percent of global revenue. Print advertising sits in third with $101
billion, followed by radio with 8.4 percent of the market and $47
billion in revenue.

In the US, TV advertising revenue will make up roughly 38 percent of the
country’s total; online is just behind with 36 percent.

In China, online advertising revenue will be 17 percent greater than TV
advertising revenue, a difference of $15 billion.

Israel, Switzerland and the US top the ad spend per person

The most mature markets are mostly high GDP per capita markets,
according to the IHS Technology report. Israel topped the list at $719,
followed by Switzerland and the US. China generated only $65 per person
in advertising, despite being the second largest advertising market.
Zimbabwe was the last on the list with $0.002 ad revenue per person per

Expect double-digit growth in 2017

“We expect global advertising revenue will grow to $590 billion in
2017,” Marouli said. “The strongest growth will come from the Middle
East and Africa, followed by Asia Pacific, where India and Indonesia
will steal the show.”

Developed markets are likely to slow down in an “event-light”, following
the high spending for the Olympics and the US elections, the IHS
Technology report said. Online will continue to be the fastest growing
medium at 14 percent, however, a slowdown in the revenue growth of
Google and Facebook, is likely as the two are not attracting TV budgets
to their online video offerings as fast as they had hoped.

About the IHS
Technology Advertising Intelligence Service

IHS Technology Advertising Intelligence Service provides its clients
with a holistic and global view of a rapidly evolving advertising and
marketing landscape. Developed and maintained by a team of expert
analysts, it offers accurate, continuously updated market data,
forecasts and reports that give our clients deep perspective on a
dynamic advertising market. As the only global product that offers the
same detail and scope for both established and emerging media, IHS
Technology provides a unique, independent and objective view.

To learn more about the report in this news release, click

About IHS Markit (

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government, improving their operational efficiency and providing deep
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percent of the Fortune Global 500 and the world’s leading financial
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