Creative Advertising Global Market Outlook

  • Overall advertising spend is split into media planning and buying (65–90 percent) and creative advertising (10–35 percent)
  • In 2016, the global advertising market was valued at approximately $548.2 billion, accounting for a 4–5.3 percent year-on-year increase On the other hand, creative advertising spend was approximately $192–195 billion
  • The strength of digital spend continues to be the key driver of growth in the global advertising market. By 2017, it is estimated to grow to $168–170 billion
  • North America, Europe and certain parts of Asia Pacific (APAC) are the most mature, due to innovation in services, high adaptability to the evolving technologies and digital media

 

Creative Advertising Global Market Trends

  • The major trends in global creative industry are rising digital spend (28–32 percent of advertising spend in 2016), production decoupling and increasing customization of advertisements 
  • Suppliers are improving their supply capability by adopting performance-based metrics for evaluation and monitoring their performance

Creative Advertising Global Drivers and Constraints

The increasing importance of digital channels and major events (the US presidential elections, the Rio 2016 Olympics and Paralympics, as well as the UEFA EURO 2016 football championship) were the major drivers of the advertising industry.

Category Intelligence on Creative Advertising

The niche market focuses on the best practices of creative services. Since large buyers that require such niche services are present in North America, the opportunities are continuously on the rise

Marketers could invest in increasing their in-house capability to handle tactical works and have a quick turnaround time to the market •Higher labor rates when compared to the developing markets

North America, being highly mature in creative services, can find a wide range of both global as well as regional service providers, and therefore finding the right partner becomes a challenge

The UK is considered as the hub of creative advertising in the Europe due to the high availability of creative personnel. Hence, this increases the availability of freelancers and local agencies

Major Events Drive Advertising Spend:

Domestic sporting events, such as the US presidential

elections, the Rio 2016 Olympics and Paralympics, as well as the UEFA EURO 2016 football

championship, and international sporting events, such as the FIFA World Cup in Brazil, has driven the

advertising spend of that region, respectively. Advertising spend was fuelled by the political

advertising, which reached approximately around $8

10 billion spend in 2016.

Increasing Digital Spend:

The increasing importance and penetration of smartphones and social

media has encouraged the marketers to increase their ad spend in these channels to attract more

consumers and to improve their brand loyalty. By 2017, digital spend is expected to increase by 13

16 percent and estimated to grow up to $168

creative advertising market share

170 billion.

Increasing Penetration into Newer Markets:

Marketers are increasing their focus on newer markets

in APAC and Africa, which have higher growth expectations


Since there is a trend of in-house capability, marketers can use freelancers to obtain creative services at a lower cost •Cultural trends and nuances of local markets vary with each other, and thus global players might find it difficult to adapt to the local markets

ncrease in Digital Advertising

Marketers are slowly shifting to global category planning to streamline their services by engaging

creative agencies on global contracts

Digital advertising spend is increasing because it reaches the same target audience with less spend when

compared to traditional ways. Hence, the demand for digital creative advertising is on the rise

Customized Service

Customization helps increase the integrity of services and brings high level of expertise

Advertisements were created to cater to mass audience before; now advertising has been customized to

serve specific target audiences using various collaborative tools, thus reducing the cost

Tier-2 companies are building capability to provide a wide range of services to various sectors, such as

branding, creative services and internal communication

 

Small businesses believe that mobile marketing is very effective and it continues to show the highest

spend growth across all media in 2016, with a year-on-year estimated increase of 46

49 percent in 2016

Innovative Service Offering

Suppliers are coming up with performance-based contracts and service options like production

decoupling for buyers

Advertisers are increasingly using technology, i.e. digital techniques based on platforms, to have better

reach and receive higher impressions