Global advertising and marketing revenues are set to end 2015 with 5% growth, up slightly from the 4.5% increase last year, but pure-play digital media is expected to level off in 2016 while traditional digital platforms start gaining share, according to the closely watched annual KPI benchmark data released today by PQ Media.
STAMFORD, CT (PRWEB) October 30, 2015
Global advertising and marketing revenues are set to end 2015 with 5% growth, up slightly from the 4.5% increase in 2014, but pure-play digital media growth is expected to begin leveling in 2016 while traditional digital platforms gain share, according to the first of three closely watched annual KPI benchmarks released by PQ Media.
Positive cyclical growth drivers in 2014, such as the World Cup, Winter Olympics, increased political spending, and surging digital media use in developing countries, have been offset in the second half of 2015 by emerging trends, like decelerating GDP growth, declining oil prices, mixed corporate earnings, and a slowdown in U.S. job creation. Due to this turn in PEST variables, PQ Media said it has recalibrated downward a number of advertising and marketing growth rates for 4Q 2015 and 2016.
“With only incremental growth expected for overall media going forward, traditional media projected to trail GDP growth, and digital advertising and marketing growth decelerating, we expect intensified competition for media budgets and stepped-up battles for market share,” said PQ Media President & COO Patrick Quinn. “As a result, media stakeholders are investing in new mission-critical technology, key talent, and actionable strategic intelligence to navigate the shifting currents transforming the media ecosystem.”
Pure-play digital media growth is expected to begin decelerating in 2016, while traditional digital platforms are projected to gain share, according to PQ Media’s Global Advertising & Marketing Revenue Forecast 2015-19. Brands are also relying on integrated, cross-channel campaigns that use multiple channels to target consumers more effectively with the help of big data analysis, new tech-driven buying and tracking systems, and more efficient use of brand activation marketing tools.
Additionally, major brands and their ad agencies continue to be overwhelmed by the growing number of digital, alternative, and traditional-digital hybrid media available to them, a number that has increased five-fold since the 1970’s to more than 175 in early 2015. Newer options resonating with advertisers are retail beacons using mobile tech to engage consumers at point of purchase and sponsored multichannel networks, which are tapping into growing online, mobile and social media usage to engage younger audiences.
Further driving change is the emerging market power and growing digital media usage of the Gen-X and Millennial generations, although these younger groups still use overall media less than older generations, such as Baby Boomers and the 70+ group, which combined dominate broadcast & cable TV usage worldwide.
Among other key advertising and marketing growth data for the 2009-14 period, PQ’s new research found that:
-Global advertising and marketing revenues exceeded $1 trillion for the first time in 2014, with combined digital and traditional media growing 4.5%;
-Digital media expanded 12.8% in 2014 to $287.2 billion, while traditional inched up 1.6% to $739.0 billion;
-While the U.S. remained the largest media market in 2014 at $358.91 billion, it ranked 6th with overall growth of 4.4%;
-Direct marketing (digital & traditional) was the largest of the 15 media silos tracked, with revenues of $217.3 billion worldwide, while entertainment advertising was the fastest growing platform, and mobile search marketing was the fastest growing of 39 digital media channels, soaring 77% in 2014.
Nevertheless, PQ Media’s new research found that U.S. and global trends were buoyed by cyclical drivers last year, which may have masked a combination of potentially adverse secular developments re-surfacing in late 2015. Global advertising & marketing will rise at a compound annual growth rate of 6% in the 2015-19 period to $1.35 trillion, while the U.S. market expands at a tamer 4%, PQ Media analysts found.
PQ Media's Global Advertising & Marketing Forecast is designed to help key industry stakeholders make smarter, faster business decisions during a seminal transformation reshaping the media ecosystem. The user-friendly slide deck and deep-dive supplemental data deliver the only comprehensive and consistent global industry map that enables corporate planning teams to analyze, share ideas, create internal reports, understand strategic options, and execute key tactics to drive growth objectives
About the Global Media Intellicast Series:
PQ Media’s Global Media Intellicast Series 2015 tracks all 100+ consumer-facing media sectors, silos, platforms and channels, including: advertising, marketing and consumer-driven digital, alternative and traditional media; 15 new media silos that combine digital and traditional media platform/channel results; 21 digital and traditional platforms and over 40 digital & traditional channels. To download a free executive summary and sample datasets and slides, visit: http://www.pqmedia.com/gamf-2015-2019.html
About PQ Media:
PQ Media is a leading provider of actionable competitive intelligence and strategic guidance to some of the world’s top media, entertainment and technology organizations. PQ Media’s proprietary methodology, databases and opinion leader panels prepare management teams with intelligent data and analytics they need to make smarter business decisions.
For the original version on PRWeb visit: http://www.prweb.com/releases/2015/10/prweb13048643.htm