The decline streak in advertising spends forecast that Publicis Media’s Zenith publishes has continued. The Middle East and North Africa (MENA) region is said to be the only region forecasting a drop in ad spends this year as well, according to Zenith’s new Advertising Expenditure Forecasts. Following a 10.1 percent decline in 2016, it predicts a 9.0 percent drop in the region this year.
The drop in oil prices in 2014 has had a severe effect on the economies in MENA, and has prompted advertisers to cut back their budgets in anticipation of lower consumer demand. Political turmoil and conflict have further shaken advertisers’ confidence in the region, the report states. While the region’s decline is expected to be moderate over time, the report further predicts no recovery during the forecast period with ad spends shrinking to 3.2 percent in 2018 and 1.1 percent in 2019.
At the global level, the report does bring good news for digital advertising, even though it does not detail it for MENA. For the first time, brands will spend more on internet advertising than on traditional television advertising, according to Zenith. Internet ad spend globally is expected to reach USD 205 billion in 2017, and projected to account for 37 percent of all global ad spend this year, up from 34 percent in 2016. Advertisers are expected to spend USD 192 billion on traditional television advertising in 2017.
Zenith predicts global ad expenditure will grow 4.4 percent in both 2017 and 2018, reaching USD 592 billion by the end of 2018. The forecast for 2017 remains at the level it predicted in December, but the forecast for 2018 is 0.1 percentage points lower.