Improving economies and popular events like the recent World Cup and Winter Olympics continued to compel advertisers to drive the largest increase in global ad spending in four years in 2014. That’s according to a report from Magna Global, which predicts worldwide ad revenue will rise 6.4% to $516 billion this year.
“The global advertising economy returns to robust growth as digital media spend is growing by double-digits and television is benefitting from the various non-recurring events of 2014,” said Vincent Letang, director of global forecasting at Magna Global.
In North America, ad revenues will accelerate 6% to $168 billion, Magna predicts. Beyond the World Cup and Winter Olympics, the rise is being bolstered by American midterm elections and sizable outlay from insurance companies, health-care institutions and local governments, which are communicating about the implementation of the Affordable Care Act.
As part of the ad revenue upsurge in North America, digital is expected to do particularly well, increasing by 14.4%. Perhaps unsurprisingly, mobile and social media ad spending will play key roles in powering the digital increase on this continent. Magna forecasts that mobile spending will soar 110%, while social media will jump 53%. Worldwide, spending on digital media will grow by $20 billion to $140 billion, Magna predicts. “The only losers in that picture are other traditional media categories that are losing market share at an accelerated rate,” said Letang.
Elsewhere, Western Europe will see ad spending increases of 2.2% this year, Magna predicts, while ad spend in China will shoot up by $5.5 billion. After the U.S. and China, Brazil and Indonesia are the individual markets that will experience the most growth, increasing a combined $4.5 billion, according to the Magna report.