The bulk of the spending on advertising will be allocated to social media ads and paid searches on search engines.
As per a report prepared by Zenith, an industry forecaster, companies across the globe would have spend nearly $581 billion for advertising by the end of 2018, with the bulk of the growth coming from sponsored content in social media ads and search engines.
The report by France’s Publicis-owned Zenith, sees the forecast for global spending on advertising rise to 4.5% from its earlier forecast of 4.1% and predicts that two-thirds of the growth will come through paid search and social media ads.
With technology playing a leading role in our lives, traditional advertising companies including market leader WPP Plc have been hit, with clients preferring to use online platforms like Google and Facebook to woo consumers.
According to Zenith’s report, the market for paid searches, which inserts sponsored content into search engine results, is set to grow to $22 billion in 2018 whereas social media ad spending is forecast to grow by $28 billion, this makes it the largest contributor to expenditure growth.
Even the Brexit-hit markets in the UK is forecast to continue its growth trajectory.
“The UK is expected to remain the fourth country in the top ten ad markets in 2020,” forecast Zenith.
The forecaster also predicted a rise of 2.4%, from 0.7%, in advertising spending growth in the UK for 2018.
As for 2019, Zenith has left its global advertising spending forecast unchanged at 4.2% while cutting growth expectations to 4.2% from 4.3% for 2020.