The global ad market is set to grow even faster than forecasted. Why? It’s the duopoly, folks.
In a report released Monday, IPG-owned Magna Global significantly revised its global ad market growth projection from 5.2% to 6.4%, which translates to $551 billion in global ad spend. In Q1, Google and Facebook’s collective ad revenue increased an eye-popping 31% globally – reaching $26.6 billion and $11.8 billion, respectively.
Magna predicts overall digital ad spend will hit $250 billion this year – accounting for 45% of global ad revenue – with mobile on track to make up 62% of the total.
In the US, the ad marketplace grew 8% in the first quarter. Digital ad sales in the US will increase in 2018 by 15% to reach $106 billion and more than half (52%) of all ad dollars.
The seemingly unstoppable growth of digital ad spend was surprising to Vincent Letang, Magna’s EVP of global market intelligence.
Anything that reaches scale has to plateau some time, but digital still hasn’t reached that inflection point, Letang said.
Brand safety concerns and anxiety over data scandals aren’t having any discernible impact on digital growth, either, although some big brands, particularly in CPG, entertainment, QSR and pharma, are putting some money back into the stability of television.
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