Canada continues to outpace global ad spend growth forecast of +3.8% in 2019; Digital to hit 50% of total share in Canada, 10% higher than global total; Mobile expected to see greatest growth of all digital platforms in Canada, +6% year over year hitting 70% share of total digital spend in 2019
TORONTO–Dentsu Aegis Network’s latest advertising spend forecast, based on data from 59 markets, predicts global growth will reach +3.8% in 2019, following +4.1% in 2018, taking total investment to US$625 billion. Canadian growth continues to outpace the global average at +5.2% worth CAD$13.4 billion.
Growth continues to be dominated by digital channels, with global share breaking through 40% for the first time and digital share (50%) more than doubling TV advertising (24%) to become the leading channel in Canada for 2019.
Within digital, mobile continues to dominate growth with over a quarter of global spend (29%) now delivered through mobile devices. Again, markets such as China and Canada – where 76% and 70% of digital spend is through mobile respectively – suggest there is room for continued growth in this space.
The global forecast reflects a slowing of growth across 10 of the top 13 advertising markets worldwide, with only Canada, India and Japan bucking the trend. 2019 will not benefit from global events such as the Winter Olympics & Paralympics, the FIFA World Cup in Russia and US mid-term elections, all of which drove ad-spend in 2018
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Hisham Ghostine, Chief Commercial Officer, Dentsu Aegis Network Canada, said:
“Continued steady economic growth combined with the entry of the newly legalized cannabis industry and its players competing for market share point to an interesting year ahead in Canada. Digital channels continue to take the lead however, television is evolving through digitization to meet the needs of a changing market and is projected to regain some ground in the next three years with the anticipated establishment of Connected, Addressable and Programmatic TV. While changes are expected in ad spending amongst key sectors, we anticipate continued growth in markets including retail, financial services and entertainment.”
Tim Andree, CEO & Chairman of Dentsu Aegis Network, said:
“As the world transitions to a digital economy, advertising is at the leading edge of change. Digital connectedness – driven not only by advances in technology, but the speed of consumer adoption – has fundamentally changed the shape of our business and will continue to do so. Even where digital penetration is highest – such as the UK and China – the trend shows little sign of slowing down.
“We’re positioned to harness this opportunity for our clients – helping them adapt to a new, digital context, building the long-term health of their brands and driving business performance.”
Global media trends
Digital ad spend to grow by +12.0% in 2019 to reach US$254 billion and 41% of global share. Digital will be the leading channel in 26 of 59 markets analysed, with the US, Czech Republic, Malaysia and Singapore joining this list for the first time.
Strong growth on mobile continues (+19.2%) with video particularly strong (+20.0%), driven by viewing on mobile devices and the growing popularity of catch up. Social media growth forecast to remain strong in 2019 (+18.4%), despite brand safety and privacy concerns.
Programmatic forecast to grow +19.2% in 2019 as the model starts to be adopted across other media e.g. TV, DOOH.
TV ad-spend is forecast to grow +0.5% in the face of competition from video-on-demand services such as Netflix. However, TV continues to innovate through ad-formats, reduced ad loads and attribution solutions.
Radio is forecast to grow +1.1% in 2019 to reach US$37 billion – 6.0% of total spend. Fast-growing technologies such as voice assistants and smart speakers are expected to push the usage of audio.
Traditional print continues to decline (Newspapers -7.2% and Magazines -7.0% in 2019) as the focus moves to digital.
Out of Home continues to grow (+4.0% in 2019) to reach 6.3% share, with growth driven by DOOH.
Dentsu Aegis Network Canada Innovates the Way Brands Are Built for clients through best-in-class capabilities in media, digital, data and creative communications services. The network’s focus on the digital economy and the distinctive products and services are delivered through agencies Amnet, Amplifi, Carat, Cardinal Path, DentsuBos, GRIP, ICUC, iProspect, Isobar, MKTG, The StoryLab and Vizeum. As one of the top ten global Dentsu Aegis markets, the Canadian team is headquartered in Toronto and serves clients through a national network of offices in Vancouver, Calgary, Montreal, Saint John and Halifax with more than 1,400 dedicated specialists.
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