Zenith Media’s Advertising Expenditure Forecast: Social Media Ad Budgets Continue to Grow at ‘Expense of Print’

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Zenith Media recently released its annual Advertising Expenditure Forecast. According to Zenith Media’s advertising expenditure forecast, social media ad budgets are continuing to grow. This is happening at the expense of print. According to the forecast, social media advertising will see 20% in ad spend boost in 2019. This will account for 13% of all global spend. This will see social media overtake print ad spend for the first time.

Zenith Media’s Advertising Expenditure Forecast: Social Media Ad Budgets Continue to Grow at 'Expense of Print'

About Zenith Media’s Advertising Expenditure Forecast

According to Zenith Media’s advertising expenditure forecast, spend on social media will grow in 2019. They stated that spend on sites like Facebook, Twitter and Instagram will grow by 20% in 2019. It will grow to reach $84bn, while combined newspapers and magazine expenditure will fall 6%. Spend on print will fall to $69bn. According to the report, social media (13% of spend) sits behind TV (29%) and paid search (17%). This breaches $100bn for the first time.

Zenith Media’s Advertising Expenditure Forecast read: “Since it began in the mid-1990s, internet advertising has principally risen at the expense of print. Over the last ten years, internet advertising has risen from 12% of total global spend (in 2008) to 44% (in 2018). Meanwhile, newspapers’ share of global spend has fallen from 25% to 8%, while magazines’ have fallen from 12% to 4.5%.”

More on the Forecast

Matt James, Zenith’s global brand president spoke about the report. He stated that social media advertising gives brands the opportunity to drive growth by using automated tools. They use these tools to optimise their campaigns for key business objectives. He talked about how by using first-party data from their own websites to identify potential customers on social media, brands can convert consumers who are already on the path to purchase and target look-a-like audiences more effectively.

Jonathan Barnard, head of forecasting at Zenith spoke about how ad growth is expected to remain stable at 4.4%. He stated that they have slightly downgraded their expectations for 2019 amid a marginally weaker trading environment. According to Barnard, growth should then remain steady out to 2021, powered by the robust US advertising market.

Source: The Drum

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