India is set to see the strongest growth in worldwide advertising spend this year, with an increase of 11.5 percent on 2016, according to new figures.
In spite of the demonetization from the Indian government in November, which saw an estimated 86 percent reduction in cash circulation, ad spending is set to grow, reaching 14 percent in 2019. Indian companies continue to spend most of their marketing money on traditional media, such as TV and print.
Russia's ad market is forecast to grow 9.6 percent, while China and Spain will each see an increase of 7.3 percent, said the report from MAGNA, the research arm of advertising group IPG Mediabrands.
The growth rates in these countries far outstrips those in some of the more established ad markets, with the U.S. forecast to see a 1.6 percent increase in spending, while France will only see 0.4 percent growth. The U.K.'s advertisers will spend 1.9 percent more this year than in 2016.
Globally, ad spending will grow by 3.7 percent to $505 billion in 2017. This is slower than in 2016, which saw a record 5.9 percent growth rate, due to the U.S. presidential election and global sports events such as the Olympic Games in Rio. Presidential election spending generated $9.8 billion in advertising dollars, according to a separate report by Borrell Associates, published in January.
"In 2017, both digital and offline growth will slow down. Online advertising sales will nevertheless continue to grow by double-digits in most markets (globally up 13 percent), but television ad sales will decline (down 1 percent) due to softer price increases, ratings erosion [lower TV ratings] and the lack of global sports events," said Vincent Létang, MAGNA's EVP for global market intelligence.
Advertisers are set to spend the most on digital means, which will take $204 billion, and over half that figure ($110 billion) will be on mobile ads. TV will take $180 billion globally.
In the U.S., traditional media such as TV, print and radio will dominate the market in 2017, with a forecast $102 billon spend (down 4 percent on 2016), while digital ad spend is forecast to reach $83 billion in 2017, up 14.3 percent.
MAGNA analyzed advertising spending in 70 countries.