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Dentsu Aegis Network Global Ad Expenditure Report July 2019
Dentsu Aegis Network Global Ad Expenditure Report July 2019
NETWORK
GLOBAL AD
SPEND FORECASTS
July 2019
The forecast and insights published in this report were compiled from
around the Dentsu Aegis Network and are based on our local market
expertise. The figures were then consolidated and where relevant adjusted
centrally in light of global macro-economic drivers.
The report includes country, region and global estimates and forecasts for
the following media, Television, Digital Media including Display, Online
Video, Social Media, Search, Classified, Mobile, Newspapers, Magazines,
OOH, Radio and Cinema, as well as share by medium data.
Thank you to all the markets for their forecast, insights and local market
expertise and to the creative services team.
Eleanor Kemp, Dentsu Aegis Network, +44 (0) 203 357 4137
eleanor.kemp@dentsuaegis.com
Lin Liu, Dentsu Aegis Network, +44 (0) 207 550 3451,
lin.liu@dentsuaegis.com
2
CONTENTS
3
CONTENTS
APPENDICES 178
4
Global Summary
KEY HEADLINES MARKET OUTLOOK
• Global ad spend is set to grow 3.6% in 2019. This amounts to total global A reflection of stable global growth
ad spend of US$609.9 billion. • The latest Dentsu Aegis Network Ad Spend forecasts show that growth is
• Forecasts have slipped globally from January this year due to economic likely to hit 3.6% in 2019 (see Figure 1), amounting to US$609.9 billion.
uncertainty affecting consumer activity and lower than expected growth in Forecasts have slipped slightly from January, reflecting the challenging
the TV market at the beginning of the year. Growth will accelerate to 4.1% economic environment at the start of the year as momentum slowed
globally in 2020 - almost returning to 2018 growth of 4.3%. considerably. Ad spend will rally to 4.1% in 2020, boosted by a year of events
• Despite the continued uncertainty around Brexit, the UK market is resilient including the European Football Championships, Tokyo 2020 Olympic &
and has been upgraded from our previous forecasts to grow 6.3% in 2019. Paralympic Games and US Presidential elections.
• Digital remains the main driver of growth and is forecast to reach a 41.8%
share of spend in 2019, an upwards revision from January 2019. Year-on-Year % Growth At Current Prices
• Video (20.5%) and Social (19.8%) remain the fastest growing channels within
digital, powered by mobile. 4G and 5G will play a pivotal role for mobile,
enabling mobile technology to process content a lot quicker for data-hungry
users – it will also allow brands to create more innovative content.
• Mobile remains the fastest growing platform and is forecast to grow by 21.4%
in 2019.
• Paid Search sees continued growth and has the largest share of spend in
digital. In 2019 this is driven in particular by developments in Amazon’s
Search advertising.
• India is forecast double-digit 2019 growth of 11.4% (up from the 10.6%
forecast in January and 10.8% growth in 2018), with the Cricket World Cup
putting growth on the front foot.
• Television’s ad spend growth is falling faster than previously forecast,
now at -0.1% for 2019, though a slight recovery is forecast for 2020 with
0.6% growth.
• Brazil sees a significant revision upwards to 8.8% growth in 2019 driven by
Mobile, which will make Brazil the largest digital market in Latin America.
MARKET OUTLOOK
UK: resilient and deeply digital Digital in the driver’s seat
• Despite the continued uncertainty around Brexit, the UK market is resilient • Digital continues to power ad spend growth and is forecast to grow globally by
and we have upgraded the 2019 outlook from our previous forecast to 6.3% in 11.5% in 2019 amounting to US$249.7 billion and a 41.8% share of global
2019. The UK is also on course for a tenth consecutive year of double-digit spend. In 2020 growth is set to continue at 11% putting digital’s share of ad
growth in digital advertising spend, highlighting the digital maturity of the UK spend at nearly 45%.
market. The UK is set to see growth in digital ad spend of 10.4% in 2019. This • The number of markets we analysed where digital has the largest share of ad
maturity is one factor that may be insulating ad spend growth from spend is up from 21 markets in 2018 to 26 this year.
geopolitical uncertainty and the confidence-dampening effects of Brexit. • Our projections for 2020 see digital reaching nearly 45% of total investment
(see figure 2).
Markets moving up
• While many markets have seen downward revisions in our latest report, along Figure 2: Share of global ad spend by media, 2018-20 (%)
with the UK there are notable exceptions. For example, in India our forecasts
are revised up from 10.6% to 11.4%, boosted by events such as coverage of
this year’s Cricket World Cup.
• Brazil stands out as a market whose ad spend forecast has seen significant
revision from January 2019. This is to reflect a more positive economic
outlook as President Bolsonaro promises tax reform and announces visa
waivers for the U.S, Canada, Japan, and Australia.
• Online Video – powered by social video platforms like Instagram Stories, Snapchat and
TikTok – is the fastest growing category within digital and is forecast to grow one-fifth
in 2019. TikTok, which has been around for less than two years, launched targeted in-
feed ads this year as advertisers strengthen their investment in Online Video. The app
has 500 million active users worldwide and is part of the rise of video along with
Instagram Stories’ 500 million daily active users.
9
AUSTRIA: ‘The state legislature election in Vienna will have a major
impact on ad spend’
OVERVIEW OF THE TOTAL ADVERTISING MARKET THE 2020 AD SPEND FORECAST
In 2020 there are two big sporting events: The European Soccer
Year on year % growth at current prices
Championships in June/July and the Olympic & Paralympic Summer Games
in Tokyo (July/August). The level of ad spend impact of the European Soccer
2018 2019f 2020f
Championship depends on the participation of the Austrian Soccer Team. If
the Austrian team qualifies, TV advertising will benefit even more from this
Austria 2.2% (2.1%) 1.1% (1.5%) 1.0% (1.3%)
event. Usually the Summer Olympic Games have no impact on advertising
spend in Austria. The time difference between Austria and Tokyo and the
Previous forecasts in brackets from January 2019 lack of interest will result in low TV viewer figures. The state legislature
LATEST KEY AD SPEND TRENDS election in Vienna will have a major impact on ad spend. Billboards, Print
and Digital will profit the most from the election.
• The economic boom in Austria did not influence the 2018 ad spend as
positively as expected. We predicted the year on year growth would be
2.7% but in the end we arrived at 2.2%. Key drivers were TV, more than AD SPEND PERFORMANCE BY CATEGORY
predicted in the January report, and Digital, at a lower level than The Category “Home and Garden” still shows the biggest year on year loss.
forecasted. The reason for this trend is the economic trouble of the Steinhoff-Group, the
• We slightly reduced the year on year growth for 2020 and 2019 in second largest spender in this category. “Services” which includes political
comparison to the January report because the economic growth rate is parties and governmental departments, overtook “Retail”. The reason for
expected to slow down in the next two years. The key drivers of ad spend this is the European Union Parliament elections.
growth will also be TV and Digital like the year before.
• Mobile Advertising is growing faster than expected compared to the earlier 2019f Gross Local 2019f vs. 2018
Top 10 Categories
report. Some advertisers are shifting about 80% of their digital budget to 2019f Currency Million YOY%
mobile advertising. This trend continues to be true, so we expect
increasing shares. Services 588 3%
Retail 429 3%
THE 2019 AD SPEND FORECAST
Economic prosperity is expected to slow down in 2019 and the GDP growth Media 351 4%
rate will be smaller than the year before. This development influences the
ad spend growth rate, which is predicted to slow down in 2019. There are Cosmetics & Pharma 315 10%
no big sporting events this year that will have a major influence on ad
Tourism 285 0%
spend. The elections for the European Union Parliament will have had an
influence on the ad spend in May. In Austria, billboards will benefit the Food 280 4%
most from the elections.
Finance 272 2%
b. TV
TV is still one of the biggest drivers in the Austrian ad market. The expected
y-o-y growth will climb to 6.0% this year and increase to 6.5% next year.
The biggest private TV contributor, the ProSieben.Sat.1Puls4 GmbH,
continues their successful diversification strategy. The public broadcaster
ORF scores with high quality news broadcasts but also with self-produced
entertainment content.
c. OOH
OOH will also benefit from the European Union Election (May 2019),
especially Billboard which is an important channel for political parties. We
are expecting the biggest growth rate in this section will be from Digital
OOH. These two factors will positively influence the ad spend for 2019,
nevertheless, we expect a decline for this category in total. The y-o-y-
growth rate is expected to drop to minus 0.7% this year.
d. Radio
Radio will slightly increase its y-o-y growth rate in 2019 to 0.9%. If the
economy slows down, the cheaper medium Radio benefits from this trend.
Programmatic Audio ads will gain more market share in the future and will
reduce the radio share.
Total Digital 5.1 3.4 3.2 Total Digital 21.3 21.7 22.2
Total Digital* 5.1 3.4 3.2 Total Digital* 100.0 100.0 100.0
Online Video 14.1 5.5 4.7 Online Video 11.8 12.0 12.2
Social Media 21.3 6.8 4.7 Social Media 11.9 12.3 12.5
Paid Search 3.4 5.0 4.2 Paid Search 29.0 29.4 29.7
Programmatic Programmatic
38.0 24.6 18.3 9.2 11.1 12.7
Spend^ Spend^
DENTSU AEGIS NETWORK *Includes Mobile/Tablet and Desktop, ^Subset of Total Digital Spend 12
BELGIUM: ‘Evolution towards digitalisation’
Belgium -1.9% (0.3%) 1.4% (1.7%) 1.1% (2.5%) and European) have introduced several uncertainties due to the
Automotive 380 3,2%
influence of factors like climate change and sustainable growth
over economic orientations. Growing social dissatisfaction and the Food 276 7,5%
Previous forecasts in brackets from January 2019
polarization of political views are other factors to be reckoned with.
Finance & Insurance 246 -1,2%
LATEST KEY AD SPEND TRENDS THE 2020 AD SPEND FORECAST
• The Belgian media landscape continues its evolution towards The advertising market is expected to grow by 1.4% in 2019 and Cosmetics & Personal Care 257 0,7%
digitalisation, particularly Mobile and Social. If one disregards 1.1% in 2020. This forecast is based on the assumption that digital
online media (see next point), gross ratecard ad investments spends will still not be accounted for by Nielsen in 2020. Since no Tourism & Transportation 65 7,2%
have suffered a negative evolution in 2017 and 2018, but we note decision over the methodology to be applied (declarative, crawling)
several discrepancies here: while TV has bounced back and has been taken yet by CIM (the body that oversees all syndicated Pharmaceutical & Medicine 119 -10,1%
enjoyed an increase in 2018, print media (particularly media surveys in Belgium), this should be a relatively safe bet.
Newspapers) have suffered major decreases, and other media Hence, if the ad expenditures measured are underestimated, their Media 350 -0,3%
have remained essentially flat. YOY evolution shouldn’t be drastically affected.
Telecommunications 206 3,7%
• Nielsen, the operator of our syndicated Adex survey, does not
officially monitor digital ad investments, though the above AD SPEND PERFORMANCE BY CATEGORY Beverages 209 -3,2%
overview does take their “unofficial” digital monitoring into
According to our forecasts based on Q1 expenditures, we should
account. Note however that the modest YOY evolution forecasts register in 2019 an Adex increase of the automotive, food and
are due to the growing irrelevance of Nielsen digital adex
telecom sectors, and a decrease of the pharmaceutical, financial
measurement methodology (dwindling number of sites measured,
and beverage sectors (the latter follows the 2018 spike, due to the
essentially local sites, measured by crawlers, monitoring mostly World Cup competition).
display activities).
b. Print
The share of ad spend dedicated to print media has been declining for
years, reaching about 24.5% in 2018. Both newspapers and magazines
have been impacted, and are expected to be further negatively affected in
the future, albeit at a lesser pace. Print media are trying to make up for
their loss of ad revenue by selling their quality inventory online.
c. Traditional OOH
OOH share of ad revenue has remained pretty stable for several years.
Together with the concentration of the offer (reduced to 3 major sales
houses), we see a decrease in number of the ‘traditional’ OOH sites,
together with an increase in quality. We also see a growing tendency to
offer smaller ‘networks’, or ad hoc selections of sites, in order to meet
specific requirements (POS, particular targets etc.).
d. Digital OOH
Digital OOH, though still relatively marginal, is growing at a steady pace
thanks to the new possibilities it offers in terms of creativity, interactivity
and personalization of the message. New digital screens are now currently
offered on a CPM basis.
Total Digital -8.2 5.4 -6.0 Total Digital 10.3 10.8 10.0
Through proximity buying, we can now do more specific OOH buying in terms of
where the audience is located and at what time. Furthermore, we can also specify How is your local DAN market taking steps to prepare for this future?
real-time content which we think is most likely to obtain a response from the We have started a new department called DDS to make more out of the data that is
audience. available and to be better at cross-selling.
Total Digital 4.7% 0.7% 3.7% Total Digital 54.3% 55.6% 56.8%
Total Digital* 4.7% 0.7% 3.7% Total Digital* 100% 100% 100%
Display (Banners) 11.1% -14.3% -5.0% Display (Banners) 29.8% 25.4% 23.3%
Online Video 33.8% 26.2% 31.9% Online Video 6.8% 8.6% 10.9%
Social Media 48.1% 48.1% 25.0% Social Media 1.7% 2.5% 3.1%
Paid Search 0.9% 1.6% 0.8% Paid Search 39.0% 39.4% 38.3%
Programmatic Programmatic
11.2% 17.8% 11.3% 72.0% 77.1% 81.8%
Spend^ Spend^
DENTSU AEGIS NETWORK *Includes Mobile/Tablet and Desktop, ^Subset of Total Digital Spend 18
FINLAND: Media market turned to growth in 2018
GDP is expected to grow 1.7% in 2019 and 1.4% in 2020 according to the
Ministry of Finance.
BY MEDIA
a. Paid Search
Paid search is expected to be one of the main drivers of growth for 2019 as
targeting with data is trending and the tools available are increasing. Google
still dominates the market with a 97% market share in Finland.
b. OOH
OOH experienced the highest growth in 2018 with 16.1% and this trend is
expected to continue in 2019. The main reason for growth is the increasing
popularity in Digital OOH advertising, which creates new solutions for
advertisers where campaigns can be targeted based on weather, location, etc.
Programmatic buying is expected to become available for OOH in late 2019
which creates new exciting opportunities.
c. Social Media
Social media and especially video formats are extremely popular and we expect
this to continue in 2019. Social media is a constantly transforming media
category for which the future ad spend is hard to estimate, but we believe that
the growth will be at least 15% in 2019. It is important to consider the role of
social media in every campaign.
d. Digital Audio
Many new audio services have surfaced in recent years and on average, people
spend over 80 minutes per week listening to podcasts in Finland. Most report
having them on in the background while doing chores or traveling for example,
which creates great opportunites for reaching today’s audiences.
Digital audio is most popular with the younger target audiences, with 38% of
A15-29 TA reporting that they have listened to a podcast within the last month.
Only 23% of 45-54 year olds had listened to a podcast within the last month,
but their average listening time is longer at 95.4 minutes per week compared to
89.3 for A15-29.
e. Amazon
Amazon is bringing their ecommerce business to Finland which is expected to
disrupt the ecommerce market and challenge the current, mostly local, players.
Total Digital 13.7 7.4 9.0 Total Digital 35.2 37.2 39.8
Total Digital* 13.7 7.4 9.0 Total Digital* 100.0 100.0 100.0
Display (Banner) 1.6 -5.0 -3.0 Display (Banner) 28.2 24.9 22.2
Online Video -36.2 10.0 10.0 Online Video 5.0 5.1 5.1
Social Media 32.6 15.4 10.0 Social Media 21.3 22.9 23.1
Paid Search 20.7 7.5 12.5 Paid Search 32.5 32.5 33.5
Programmatic Programmatic
64.7 34.3 21.1 36.0 45.0 50.0
Spend^ Spend^
DENTSU AEGIS NETWORK *Includes Mobile/Tablet and Desktop, ^Subset of Total Digital Spend 21
FRANCE: ‘Legislative changes could positively impact the market in 2020’
OVERVIEW OF THE TOTAL ADVERTISING MARKET Global or local events to boost spend in 2019 CONSUMER TRENDS DRIVING CHANGES IN THE PROFILE OF AD
In September the Rugby World Cup in Japan should sustain household SPEND
Year on year % growth at current prices
consumption to a certain extent. France’s advertising market is forecast to Major consumer trends in France are related to organic, natural products
grow by +3.6%, primarily driven by digital investments at +8.9%, TV at and ecology. Although this is not a new trend, the rise in popularity shows
2018 2019f 2020f
+0.8% and OOH media up by +2.2%. We expect less of a decline in Print ad that there is still potential for winning new clients. Consumers are also
spends: -4.4% vs -6.6% in 2018. At the end of 2018, the government has seeking products - food but also beauty and personal care items - without
France 5.3% (3.6%) 3.6% (3.1%) 3.0% (2.5%)
reviewed the laws concerning the media chronology of movies, by hazardous or potentially harmful ingredients.
Previous forecasts in brackets from January 2019 shortening the period that TV and VOD platforms have to wait to broadcast The digital revolution is still ongoing and we are monitoring activity
movies after their release in theatres. regarding AI, connected speakers etc.
LATEST KEY AD SPEND TRENDS Nevertheless the equipment in France is still in its infancy, with only 5,3%
• The results published by IREP in March for the year 2018 showed a rise of THE 2020 AD SPEND FORECAST of households equipped with this technology.
+6.0% for total media ad spend. The growth has been especially strong For 2020, we forecast a +3.0% rise for all media, slightly lower than in
for digital +17.2% vs. 2017, and for OOH +5.1%. By contrast, other 2019. The European football championship in June and the Olympic Games
media suffered from the competition from the Internet, including Radio in Tokyo in August 2020 will have a positive impact on TV ad spend, leading
Top 10 Categories 2019f Gross Local 2019f vs. 2018
which declined by -0.9% and Print -6.6%. Television has suffered less but to an increase of +1.0%. Furthermore, laws regarding forbidden sectors in 2019f € Million YOY%
its growth is limited +0.2%. TV, such as programmatic TV, ads for retailer’s discounts and ads for cinema
• The end of 2018 was marked by a social and economic crisis in France, should hopefully be reviewed by the end of the year. If legislative changes Retail 5 551 1,3%
with the “Gilets jaunes” or Yellow Vests Movement. There was a slight were decided, the market could be positively impacted in 2020.
decrease in media investments for many clients, reluctant to invest in a Programmatic TV buying will open up a new market for smaller advertisers Automotive 3 528 4,8%
period of uncertainty. that don’t yet invest in TV; but other media (press, radio and OOH Food 2 595 -1,7%
• 2018 GDP growth stood at +1.5% vs +2.3% in 2017. especially), fear a fall in their revenue because of this new legislation.
Culture & leisure 2 202 -5,4%
THE 2019 AD SPEND FORECAST RATIONALE FOR ANY FORECAST CHANGES COMPARED TO THE
Beauty care 2 134 -1,4%
PREVIOUS REPORT (JANUARY 2019)
In 2019, we expect a rise in media ad spend of +3.6% - lower than 2018.
Bank & insurance 1 978 -1,7%
We are expecting an end to the Yellow Vests Movement before Summer,
thanks to the Government’s financial aid for French households. The economic context
Tourism 1 724 1,3%
European elections will take place on the 26th of May 2019 in France, but We improved our forecasts because the market is recovering, many thanks
since this is a global election it won’t have as much impact as a national to digital investments. Household consumption should be spurred on by the Media information 1 494 -3,5%
election. This election will have less media coverage than presidential strong boost in buying power (+2.5% according to OFCE), sustained by
elections, therefore we don’t forecast any impact on ad spend during socio-fiscal measures taken by the government who are reallocating almost Telecoms 1 413 -0,8%
Spring. 12 billion Euros to households over the year. Services 1 380 -1,9%
In June and early July, the FIFA Women’s World Cup is being held in France, AD SPEND PERFORMANCE BY CATEGORY
and this should have a positive impact on TV ad spends for the broadcasters Retail is still the best performing category in terms of ad spend, with €5.6
TF1 group and Canal+. Moreover, the anticipated high performance of the billion invested and a forecast increase of +1.3%. Automotive follows with
French team will help channels sell the event. €3.5 billion and a forecast of +4.8%. Food is the third most invested
category with €2.6 billion, but we foresee a decrease in ad spend of -1.7%.
The biggest fall is in the Media Information sector with -3.5%. However only
a small change is predicted between 2018 and 2019.
f. Cinema
ii. Social Media
We expect a forecast growth of +3.0% in 2019 thanks to the new screens 4DX
We expect a rise of +26.1% in social media investments, much lower than the and ScreenX (a three-screen projection) and the progression of new technology
previous year (+62.6% in 2018), reaching a 25.9% share of the market. such as 3D and IMAX. We predict a spend of 95 M€ and SOM of 0.8%.
iii. Mobile
Total Mobile investments should reach 1,347 M€ and 59.6% share of display.
We expect a rise of +15.0%.
Total Digital 17.2 8.9 6.4 Total Digital 41.5 43.6 45.1
Total Digital* 17.2 8.9 6.4 Total Digital* 100.0 100.0 100.0
Display Banner 13.9 -9.8 -9.2 Display Banner 10.3 8.5 7.2
Online Video 13.2 12.6 13.3 Online Video 7.9 8.2 8.7
Social Media 62.6 26.1 15.3 Social Media 22.3 25.9 28.0
Paid Search 11.0 5.3 3.9 Paid Search 46.7 45.1 44.1
Programmatic Programmatic
25.6 18.0 13.1 66.6 72.2 76.8
Spend^ Spend^
DENTSU AEGIS NETWORK *Includes Mobile/Tablet and Desktop, ^Subset of Total Digital Spend 24
GERMANY: ‘Tense global issues dampen ad development’
OVERVIEW OF THE TOTAL ADVERTISING MARKET RATIONALE FOR ANY FORECAST CHANGES COMPARED TO THE
Top 10 Categories 2019f Gross Local 2019f vs. 2018
PREVIOUS REPORT (JANUARY 2019)
Year on year % growth at current prices 2019f Currency Million YOY%
There has been little change from previous predictions. 2018 was a little
2018 2019f 2020f below market expectations, especially regarding most classical vehicles. Media 4.909 -1,3%
Advertisers are still reluctant as tense global political and economic issues
Germany 0.2% (1.0%) 0.4% (0.5%) 0.5% (0.5%) are taking their toll. Retail 4.903 -1,9%
a. TV content and brand safety will have long-term effects or will only be a Another important issue is connected TV (OTT) i.e. the growing amount of
temporary restraint. video content which can be bought programmatically on the big screen.
The TV measurement joint-industry-committee AGF and Google presented
Programmatic OOH is slow to pick up on, given its publisher and tech
the first results of their crossmedia quota-project in early 2019. This is still
On the positive side, the project, which aims to link online video usage data, service provider structure. Programmatic audio is technically very good, but
not the long demanded official crossmedia video currency, but it is an
such as YouTube, to TV, has delivered preliminary interim results. As a the demand isn’t high so far.
important first step.
Furthermore, AGF will provide convergent streaming data on a daily basis result, the online video market continues to move towards TV.
with only 8 days time delay starting mid April, and will expand the mobile v. Paid Search
panel on smartphones and tablets. In order to face the predominant GAFA, ii. Social Media Hot topics in 2019 are voice search, AI and machine learning, automation,
the demand for sales houses to start building video-platforming-alliances is In the social advertising channels, we can identify two kinds of advertisers. audience management, Online2Offline, Amazon advertising and data driven
huge and first solutions are expected within 2019. First Log-In alliances like For the first group the channel is very important - they invest in well-trained attribution.
netID and verimi are already in place but still need more partners to staff assisted by bid management tools. For the second group of LinkedIn profile targeting with Bing will become an exciting possibility for
increase relevance. advertisers, Brand Safety is very critical - they are critical of the social b2b clients. Amazon Advertising will become a serious challenge for Google.
communities with user-generated content, and are therefore very cautious We see a lot of advertisers shifting budget from Google to Amazon.
These facts all show that the market is very eager to respond to the about investing budgets. Pinterest and Snapchat will pick up in Germany in Audiences are the new keywords. Keywords are still important, but
fundamental questions and circumstances that it is facing (changing user 2019. audience-targeting on the search network will be of at least equal
behavior, competition). importance for high performance.
iii. Mobile Google will focus on automation and automated solutions like smart bidding
or responsive search ads.
Smart TV distribution reached more than half of all German households Right now 5G is a key topic in the German mobile market, i.e. the auctions
by the end of 2018 and thus ads on Addressable TV are strongly of the 5G frequency blocks. Deutsche Telekom, Vodafone and Telefonica It’s getting more and more important to connect online to offline. Moreover,
increasing in 2019. ATV is gaining much more relevance and opens totally have bid in order to remain competitive in the future. Moreover, Pinterest we need a complete view of the entire customer journey so we have a more
new spot-optimization-options (already known from digital) for the big launched its marketing offer in Germany. Stories and shopping buttons in accurate understanding of campaign performance and attribution.
screen. social media apps are becoming more and more popular - they lead to
spontaneous purchases and they’re where discussions about products begin.
b. Digital
Digital continues to grow and the hurdles of the GDPR seem iv. Programmatic
largely overcome. In 2019 the programmatic market will continue to grow. The demand for
However, growth is unevenly distributed. Social media will remain largely impact measurement, verification, viewability tracking and ad fraud
stable and search engine marketing will grow only slightly. Here a high continues to increase. The silos made by global and national publishers
market maturity has a dampening effect. By contrast, video advertising make it increasingly difficult for advertising to implement their
in particular continues to grow. The expenditure for retail marketing programmatic campaigns through one DSP. More and more advertisers rely
at Amazon and Co. as a comparatively young digital channel is booming. on two or three DSPs. In general, we see a further continuous shift from
All in all, the established digital channels are growing only to a limited non-disclosed margin business models to fully transparent models.
extent, but new channels such as retail marketing are ensuring
constant growth.
d. Print
As circulation and ad spend figures decline, publishers are focusing on a range of
activities to increase their income. This includes brand extensions (as print spin-off
or even on TV/as a product range), cooperation with celebrities/influencers and
alliances with digital companies.
Newspaper publishers even find additional income in using their skills as regional
distributors for logistic topics.
e. Radio
Ad investments are staying consistent for audio and there are some upcoming
trends driving this development: 5G might be an important topic for the radio
market. After the roll-out and the availability of respective devices, connectivity and
audio streaming will be supported by the new standard.
With the increasing use of smart speakers as audio devices, it is easier to select and
switch radio channels. Radio spots must adapt to new habits and become shorter,
more concise and more target-group-specific. In the future, this will be made easier
by special formats and more automated procedures, planned and offered by radio
sales houses.
f. Cinema
As cinema is competing with streaming and struggling with decreasing audience
figures, movie companies are focusing more and more on improved technology and
comfortable cinema atmospheres including high quality customer service. There is
still a focus on Event Cinema with live broadcastings of cultural and sports events.
And advertising is part of the event: According to a new eye-tracking analysis, 95%
of the cinema audience actually view cinema advertising – as opposed to only 55%
with TV. Moreover, cinema offers more and more cross media options e.g. via online
movie sites and social channels which connect viewers after the movie.
Total Digital 7.0 7.1 7.2 Total Digital 36.7 39.1 41.8
Total Digital* 7.0 7.1 7.2 Total Digital* 100.0 100.0 100.0
Display Banners -7.0 -6.0 -5.0 Display Banner 15.4 13.5 12.0
Online Video 8.0 5.5 4.9 Online Video 8.9 8.7 8.6
Social Media 10.0 10.0 8.5 Social Media 10.5 10.8 10.9
Paid Search 2.0 2.7 2.5 Paid Search 52.8 50.6 48.4
Programmatic Programmatic
24.9 23.2 21.4 19.0 22.0 25.0
Spend^ Spend^
DENTSU AEGIS NETWORK *Includes Mobile/Tablet and Desktop, ^Subset of Total Digital Spend 28
GREECE: ‘Political tension challenges Media Spend Growth’
BY MEDIA
a. TV
In TV, single digit inflation and Energy players are driving the marginal
advertising expenditure growth. All licensed National TV channels are
heavily investing in programming, mainly in event-based shows and Greek
series, thus viewership is expected to retain the high level currently being
achieved. In Greece, TV still absorbs the majority of ad spend.
b. Digital
GDPR enactment has slightly slowed down the short-term e-commerce and
performance related spending, while the industry is in the “getting
compliant” phase. OTT and VOD platforms are making ground and will be
the major “threat” to 2020 TV spend.
c. OOH
OOH ad spend is expected in 2019 to continue along an upward path
powered by the upsurge of mobile OOH formats and digital formats
integration.
Slow but steady recovery is the most likely scenario for the Greek ad spend
forecast in the coming year. On the optimistic side, the stabilization of the
GDP and the potential improvement of unemployment rates could drive a
slight improvement in disposable income and consumption, thus generating
a parallel growth path.
Total Digital 6.2 2.3 2.3 Total Digital 10.0 9.9 9.6
DENTSU AEGIS NETWORK *Includes Mobile/Tablet and Desktop, ^Subset of Total Digital Spend 31
IRELAND: ‘An unprecedented level of uncertainty’
2018 2019f 2020f trading partners. The continued lack of clarity over the nature of the UK’s
Retail 185,353,547 -0.06%
withdrawal from the European Union is the most immediate pressing risk to
Ireland 2.5% (2.7%) 3.5% (4.4%) 2.8% (5.7%) the Irish economy. Household Services 78,616,186 -2.74%
The prospect of a no-deal Brexit also leads to significant variability around
Entertainment & The Media 72,203,912 -4.77%
short term forecasts for the Irish economy; under a baseline, no-Brexit
Previous forecasts in brackets from January 2019
case, we believe the Irish economy would grow by 3.8% in 2019 and 3.2% Finance 71,094,965 11.85%
LATEST KEY AD SPEND TRENDS in 2020. However, a no-deal scenario with significant disruptions would
• The TV forecast has been revised to almost flat YoY in 2019 and 2020 – reduce these GDP growth rates to 1.2% and 2.4% respectively. Motors 55,277,089 -11.44%
previously we were predicting low single digit growth each year but
Govt, social, political organisations 52,925,932 12.63%
uncertainty around Brexit has led to revenue adjustments by the TV THE 2020 AD SPEND FORECAST
stations. Our forecasted position for 2020 is 2.8% growth (an incremental increase of Drink 48,289,699 16.68%
• Radio and Cinema are predicted to be flat YoY for this year and next, with +€24million).
OOH seeing a slight increase in 2019 but then dropping back to flat in Euro2020 and the Olympics are both huge sporting events in 2020 which Food 44,002,350 0.75%
2020. New radio trading models are being investigated in this market as should drive an increase in ad spend – particularly with Dublin being a host Travel & Transport 42,492,896 -5.63%
well as a lot of OOH inventory switching over to digital which is making city for the Euro2020 games.
these media very hard to call. Cosmetics & Toiletries 29,559,949 -8.23%
These sporting events coupled with further Digital growth – predominately
• Newspaper and Magazine spend is again predicted to drop in both 2019 paid search, social media and video will drive the 2020 position.
and again in 2020.
a. d.
The Drink category, Govt, social and Political and Finance are the categories The big tech companies GAFA (Google, Apple, Facebook and Amazon) are
showing substantial growth in the Irish market. impacting growth of the agency digital spend % with some clients spending
New legislation is being introduced in Q4 relating to alcohol advertising directly with the tech giants. This is further hindered by the fact both
which may have an impact on the availability of inventory – this category is Google and Facebook have large operations based in Dublin.
showing signs of ‘spending while they can’ before restrictive laws come into
effect. e.
• Digital is driving growth with +10% forecasted for 2019. Outside of this,
The Irish housing market is again seeing an upward growth curve, in line the only other media showing positive YoY positions are: OOH (+1.6%)
with the previous year, meaning lending is back in demand – banks, who and TV (+0.4%).
had been quiet for a number of years post recession, are now back spending
to fight for house buyers’ business. • Newspaper, Magazine and Radio suppliers are having a turbulent year with
the majority of suppliers seeing declines YoY. Some Radio suppliers are
b. seeing increases to balance out this medium.
Dept of Finance Trade with the UK equates to 35% of Irish GDP. Thus, it is a
key trading partner. The UK takes 43% of Irish indigenous firm exports, so • The main drivers of growth in Digital are Video and Search, with Social a
the expected negative impact of Brexit on the UK economy will have knock- close 3rd – interestingly, Social is forecasted to flatten out in 2020.
on effect in Ireland. Sterling has fallen sharply over Brexit concerns, which
hits exports to the UK and impacts Irish firms competing with UK exports to
Ireland and elsewhere.
Total Digital 12.0 10.0 8.0 Total Digital 44.7 47.5 49.9
Total Digital* 12.0 10.0 8.0 Total Digital* 100.0 100.0 100.0
Online Video 35.7 31.6 40.0 Online Video 9.9 11.9 15.4
Social Media 20.5 13.8 0.9 Social Media 24.6 25.5 23.8
Paid Search 16.9 20.4 11.1 Paid Search 37.2 40.7 41.9
Programmatic Programmatic
n.a. n.a. n.a. n.a. n.a. n.a.
Spend^ Spend^
DENTSU AEGIS NETWORK *Includes Mobile/Tablet and Desktop, ^Subset of Total Digital Spend 34
ITALY: ‘2020 will suffer at a macroeconomic level’
OVERVIEW OF THE TOTAL ADVERTISING MARKET RATIONALE FOR ANY FORECAST CHANGES COMPARED TO THE
Top 10 Categories 2019f Gross Local 2019f vs. 2018
PREVIOUS REPORT (JANUARY 2019) 2019f Currency Million YOY%
Year on year % growth at current prices Among the main causes of forecast downsizing for 2019 and 2020, we must
highlight television audiences that are becoming more and more FOOD 891 -1.7
2018 2019f 2020f
fragmented. This is also due to the success of new VOD platforms such as
AUTOMOTIVE 880 -3.1
Netflix, Amazon Tv, Now Tv and Tim Vision.
Italy 2.0% (1.6%) -1.6% (0.8%) 0.6% (1.6%)
RETAIL 585 2.0
Moreover, in August 2018 the Government approved the “Decreto Dignità”:
Previous forecasts in brackets from January 2019 MEDIA/PUBLISHING 500 2.2
a law that will ban advertising on betting and online games from June 2019.
LATEST KEY AD SPEND TRENDS It also adds an absolute and omni comprehensive limitation to any kind of CULTURE/LEISURE 439 -13.6
• The Italian macroeconomic situation shows a negative conjuncture. Fall indirect advertising that arises from sponsorships of market categories, such
2018 has contributed to reaching a “technical recession” that is expected as culture of sport, that were excluded from the previous regulation PHARMACEUTICALS 414 -0.1
to mark the country throughout all of 2019. The main macroeconomic approved in 2015.
indices have been strongly downsized: 2019 +0.2% for GDP and
TELCO 405 -7.6
consumptions. AD SPEND PERFORMANCE BY CATEGORY FINANCE/INSURANCE 354 1.5
• Standard & Poor’s Agency has confirmed the BBB rating, with a negative The market decrease forecasted for 2019 will affect all of the main
outlook for Italy. BEVERAGES/ALCOHOLICS 347 0.9
product groups.
• Because of the negative macroeconomic conjuncture, we foresee a Food is expected to decline by -1.7%, Automotive by -3.1% and Telco PERSONAL CARE 330 0.9
contraction of investments driven by multinational corporations. The by -7.6%. The Culture and Leisure category will register a drop in
market forecasting has been reconsidered and reduced to -1.6% vs 2018. double figures as it is directly affected by the “Decreto Dignità” and the
resulting restriction on Betting, that will cause the category a loss of
THE 2019 AD SPEND FORECAST about 70 million.
2019 will not benefit from any significant sport events.
The European Elections in May 2019 did not have a significant positive The categories that will be less affected by the crisis are Retail, with a
impact on ad investments. growth of +2.0% for the year, and Media/Publishing (+2.2% vs. 2018).
b. Digital Listeners are loyal to the medium, and its penetration, that exceeds a third
of the population, remains stable.
Digital investment makes up around 30% of share of total ad spend, with a
positive growth of +6%. 71% of the Italian population surf the net for more Time spent listening is growing too, thanks to out of home listening - car
than 3 hours per day; the percentage of penetration for younger audiences radio remains the leading device, but we highlight a significant growth in
reaches 97%. Mobile rules the roost, with 15% growth and a 50% share of mobile.
total digital ad revenue.
Total Digital 7.5% 6.0% 5.2% Total Digital 26,7% 28,8% 30,1%
Total Digital* 7.5% 6.0% 5.2% Total Digital* 100.0% 100.0% 100.0%
Display (Banners) -1.5% -2.1% 0.0% Display (Banners) 19,9% 18,4% 17,5%
Display Performance 5.9% 1.6% 2.5% Display Performance 15,0% 14,3% 14,0%
Online Video 16.0% 14.3% 10.0% Online Video 29,4% 31,7% 33,2%
Paid Search 7.3% 5.5% 4.8% Paid Search 35,7% 35,5% 35,3%
Social Media 18.7% 17.1% 17.6% Social Media 17.5% 19.3% 21.6%
Programmatic Programmatic
33.1% 30.7% 30.4% 17.5% 21.3% 25.9%
Spend ^ Spend ^
DENTSU AEGIS NETWORK *Includes Mobile/Tablet and Desktop, ^Subset of Total Digital Spend 37
NETHERLANDS: ‘Volatility caused by calculation changes,
but growth nevertheless’
OVERVIEW OF THE TOTAL ADVERTISING MARKET THE 2020 AD SPEND FORECAST
Besides the economic outlook, we expect that ad spend will be demand
Year on year % growth at current prices
driven, as the major large volume medium types are close to maximum
capacity, meaning a general rise in prices, and thus in ad spend.
2018 2019f 2020f
Netherlands 3.3% (1.9%) 2.9% (2.0%) 2.9% (2.1%) AD SPEND PERFORMANCE BY CATEGORY
Ad spend will be driven by retail, FMCG and the catering/tourist industries.
Previous forecasts in brackets from January 2019 We also expect a major impact from the transport, government and telco
services. The economy will also boost spend in the transport sector.
LATEST KEY AD SPEND TRENDS
• Growth is back up due to positive market influences & adjusted net
calculations.
Top 10 Categories 2019f Gross Local 2019f vs. 2018
• The market looks positive for the first few months of 2019. 2019f Currency Million YOY%
• The impact of the removal of agency commission by several large sales
houses is yet to be determined and is still under debate, making Retail 1.851 +2,5%
forecasting extremely difficult and volatile. Food & stimulants 1.041 +2%
Catering/Tourist
THE 2019 AD SPEND FORECAST 886 +3%
industries
There are no big events influencing ad spend in 2019. Provincial elections
(shredding of the political centre, with large gains for right wing and Green Media 698 +1%
parties) and elections for the European Parliament (to be held at the end
Transport 675 +6%
of May) have no impact on spend levels. This summer, there are no major
spend-boosting sport events taking place. Financial 531 +2%
Total Digital 7.8 7.1 6.3 Total Digital 48.5 50.5 52.2
Total Digital* 7.8 7.1 6.3 Total Digital* 100.0 100.0 100.0
Online Video 20.1 13.3 15.2 Online Video 10.3 10.9 11.8
Social Media 19.5 12.8 8.8 Social Media 17.4 18.3 18.7
Paid Search 8.8 6.5 5.6 Paid Search 46.8 46.5 46.2
Programmatic Programmatic
39.3 15.3 29.1 22.8 24.6 29.8
Spend^ Spend^
DENTSU AEGIS NETWORK *Includes Mobile/Tablet and Desktop, ^Subset of Total Digital Spend 40
NORWAY: ‘Moderate growth driven by digital’
Sports/Leisure 975 -8 %
Digital In practice, the Norwegian OOH market is a duopoly and divided between the
two global players JCDecaux and Clear Channel. The latter has recently
Digital media will become more and more important to most businesses. After
tightened their presence in the capitol Oslo, while on a countrywide basis it is
double-digit growth for several years there is still room for further growth, but
more evenly split.
spending is shifting away from banner ads and moving to search and social
media. There will also be a transition to more data-driven and targeted OOH remains strong as a true ‘mass media’. Combined with further digital
advertising (programmatic). innovation, we think OOH will gain market share in the coming years.
Social media is one of the major drivers of digital spend, shifting from
traditional direct buying. However social spend is hard to measure - unofficial Newspapers
numbers indicate 10-15% growth in 2019 on top of previous years’ strong One cannot comment on the Norwegian media market without mentioning
growth. newspapers, and in particular the local ones. Newspapers have until a few
At the same time there is more and more focus on viewability, brand safety years ago been the largest media group in Norway, and even though they
and data (GDPR) compliance. We expect to see more private deals/market have lost more than 50% of their advertising revenue since 2007, they have
places in the coming year(s). More money will also be put into own channels during the same period nearly doubled the income from online advertising
and disappear from the traditional reports. (including online newspapers).
2018 was a turning point for the local newspapers as their combined (digital &
Online Video print) subscriber base increased for the first time in several years. They are
developing new digital products while milking the old print cow for what it’s
One of the fastest growing media groups both in 2018 and 2019 is expected to
worth, and apparently that is still quite a lot. This is expected to continue in
be Online Video. With traditional TV in short supply there is huge potential,
2019.
Total Digital 8.4 7.0 5.0 Total Digital 54.4 57.1 59.0
Total Digital* 8.4 7.0 5.0 Total Digital* 100.0 100.0 100.0
Display (Banners) 11.7 0.0 1.0 Display (Banners) 44.1 41.2 39.7
Online Video 13.6 26.0 20.0 Online Video 4.4 5.2 6.0
Social Media n.a. n.a. n.a. Social Media n.a. n.a. n.a.
Paid Search 9.9 11.0 8.0 Paid Search 31.5 32.7 33.6
Programmatic Programmatic
20.4 9.7 13.4 13.6 13.9 15.1
Spend^ Spend^
DENTSU AEGIS NETWORK *Includes Mobile/Tablet and Desktop. ^Subset of Total Digital Spend 43
PORTUGAL: ‘A slow pace of growth’
OVERVIEW OF THE TOTAL ADVERTISING MARKET THE 2020 AD SPEND FORECAST Telecommunications
For 2020, we estimate that the market will reach around €530 million. The With 33.7 million ad spend for 2019 and +3.6% growth vs 2018, TV and
Year on year % growth at current prices
market will continue to recover slightly with a growth rate of around 3.4%. Digital lead expenditure in this sector. Altice, NOS Comunicações, Vodafone,
Press (newspapers and magazines) will continue to lose its weight (see next Huawei and Nowo are the top 5 companies in this category.
2018 2019f 2020f
page) with digital growing its share of total advertising spend. TV will lead
advertising expenditure with around a 50% share of total spend, remaining
Portugal 3.1% (3.4%) 3.2% (2.7%) 3.4% (2.9%)
the main media in Portugal whilst progressively adapting from FTA/linear to 2019f Gross Local 2019f vs. 2018
Top 10 Categories 2019f
non-conventional broadcasting. Advertisers and consumers are also Currency Million YOY%
Previous forecasts in brackets from January 2019 adapting to this change in TV.
Retail 58.6 7.6%
LATEST KEY AD SPEND TRENDS AD SPEND PERFORMANCE BY CATEGORY Automotive 53.5 4.3%
• The expected growth of 3.4% for 2018 turned out to be 3.1%. The market Retail Cosmetics/ Beauty/
51.1 2.4%
is facing a slow recovery and for the upcoming years we predict the same Retail, the major category in the market and one of the pillars of ad spend Personal Care
pace for advertising expenditure increase. in 2019, will follow this positive trend with 7.6% growth vs. the previous Pharmacy/ Drugs/
year. 50.5 -0.3%
Remedies
THE 2019 AD SPEND FORECAST TV is the main medium in this category, followed by Digital.
Food 42.5 -0.4%
The total market has performed positively in Q1, with a 3.3% increase. The top 5 Players are Continente, Lidl, Worten, Intermarché, and El Corte
Internet (+8%) OOH (+8%) and Radio (+10%) are the medias with the Inglês.
Tourism/ Culture/ Leisure/
highest contribution to that growth. TV is almost flat (-0.3%), and Press 38.2 0.2%
Transportations
keeps losing investment (-4%). Automotive
In 2019 we will have 2 major political events: the European Parliament This category is expected to grow 4.3% in 2019. Consumer confidence Telecom/ Communications 33.7 3.6%
elections and the Government elections in October. Both elections are not levels are increasing and some categories will recover along with this
expected to affect market evolution or advertising expenditure, however improvement.TV and Digital take the biggest slice of the pie. Renault, Fiat, Finance/ Insurance/
some uncertainty may arise in the market. 28.6 4.7%
Mercedes Benz, Nissan and Seat are the top 5 brands in this sector. Banks
d. Radio
Mobile is becoming the most popular screen used by many target audiences, From simple spots to a more integrated brand presence inside programs,
and content/advertising is being delivered, adapting messages, formats and different formats and an integrated approach to brand communication has
creative solutions in order to drive high CTRs and conversion rates. allowed Radio to sustain a slice of the pie. Brands are using radio DJ’s,
especially on “prime time” (daily morning broadcast shows), to interact,
On Social Media, Facebook remains the “player” when using or planning promote, or use their voices for brand communication. Radio is being
Social Media, whether it be through Facebook ads, using newsfeeds supported by digital through the use of official Instagram accounts, YouTube
effectively, or in tracking lead generation right through from start to finish. channels and Facebook.
Total Digital 14.6 12.0 8.0 Total Digital 21.6 23.4 24.5
Total Digital* 14.6 12.0 8.0 Total Digital* 100% 100% 100%
Online Video 1.8 19.0 4.8 Online Video 16.5 17.5 17.0
Social Media n.a n.a n.a Social Media n.a n.a n.a
Paid Search n.a n.a n.a Paid Search n.a n.a n.a
Programmatic Programmatic
n.a n.a n.a n.a n.a n.a
Spend^ Spend^
DENTSU AEGIS NETWORK *Includes Mobile/Tablet and Desktop, ^Subset of Total Digital Spend 46
SPAIN: ‘Slight growth expected in 2019’
b. Digital
Digital is the second biggest media in Spain, with growth of 9% expected v. Paid Search
for 2019.Online penetration is very high (78% daily), with 69% of time Paid Search is growing by 7.8%, which is less than the Display’s growth for
spent on mobile (31% desktop). In 2019, Digital and TV will be tied, each 2019. Google is the clear leader in the Spanish market.
holding 36% share of total ad spend. 2020 is the year when Digital media is Voice search is increasing but still fairly small as the market needs to
expected to take over and achieve market leadership. mature.
d. Print
Print is expected to continue to decline as circulation decreases.
Consumer advocacy due to print credibility maintains advertising demand.
Overall consumption is stable due to an increase in digital consumption,
catering for a range of age groups.
National titles are suffering more than regional, and the consumption shift
towards digital media is not fully monetized by media owners.
Major publishers are investing and preparing data offerings in order to
improve their digital business performance.
e. Radio
Competitive costs, flexibility and content integration maintain demand,
with 3.3% growth in 2018 and a stable situation expected in 2019 and 2020
with slight growth. National groups have concentrated market share in the
last few years, at the detriment of smaller local stations. High saturation at
peak time (early morning) is driving price increases in top stations.
Radio consumption maintains stable and its digital offer is growing
(77% of the population listens to music through the web/apps).
f. Cinema
Consumer attendance is stable and young audiences maintain cinema
demand with 3.4% growth expected for 2019.
Total Digital 9.1 9.0 7.8 Total Digital 32.6 35.3 37.9
Total Digital* 9.1 9.0 7.8 Total Digital* 100 100 100
Online Video 14.3 14.3 13.0 Online Video 11.1 11.6 12.2
Social Media 21.1 15.9 15.0 Social Media (1) 28.5 31.2 32.7
Paid Search 7.7 7.8 6.3 Paid Search 51.6 51.0 50.3
Programmatic Programmatic
20.2 20.1 26.1 17.8 19.4 22.4
Spend^ Spend^
DENTSU AEGIS NETWORK *Includes Mobile/Tablet and Desktop, ^Subset of Total Digital Spend 50
(1) Social Media and Online video have overlap
SWEDEN: ‘The beginning of 2019 indicates some good prospects
for the year’
OVERVIEW OF THE TOTAL ADVERTISING MARKET The economic context
The Swedish economy is expected to slow during 2019, and many media
Year on year % growth at current prices
categories are facing strong comparison figures for 2018 which have in part
been powered by sports events and elections. Despite this, the market is
2018 2019f 2020f
showing some positive signals. Many media categories indicate a good start
and the EU elections in May will also contribute to some degree. Digital
Sweden 7.3% (6.4%) 4.9% (4.5%) 0.1% (0.4%)
investments are expected to bring 2.2 billion SEK into the market during
2019, corresponding with a growth of about 10%. Digital growth thereby
Previous forecasts in brackets from January 2019 continues and is in line with European development. This positive digital
LATEST KEY AD SPEND TRENDS development, paired with a positive trend for video, out-of-home and radio
makes way for yet another year of growth in the market.
• OOH is continuing to be sold out in many periods and in the most
attractive formats. This will lead to an increase in pricing due to strong
demand and will make it difficult for us to negotiate when the rate of sold AD SPEND PERFORMANCE BY CATEGORY
out placements is very high. We expect this will be reflected in inflation The retail industry has been in decline and is now forecasted to decrease
increases in 2019, and the estimated inflation for OOH is 9%. by -10% in 2019. Categories like Finance & Insurance and
• We have seen exceptional inflation in the TV market in the last few years, Organisations/Information will have strong development in 2019, with an
which we envision will continue. Estimated inflation for TV in 2019 is 14%. increase of 8-10%.
• Digital investments are expected to bring 2.2 billion SEK into the market
during 2019, corresponding with a growth of about 10%. Top 10 Categories 2019f Gross Local 2019f vs. 2018
2019f Currency Million YOY%
The beginning of 2019 indicates some good prospects for the year, but Food & Beverage 4 143 760 -1%
nevertheless the market appears more cautious, causing IRM to present a
Finance & Insurance 10 093 303 10%
marginally lower forecast. The winner in the media market is Digital media
as before, but OOH, TV and Radio are also showing strong development. Beauty & Personal Care 1 469 752 -22%
Print media is in decline. Tourism & Transportation 3 383 210 -8%
As opposed to 2018, there are minimal contributions from political Pharmaceutical & Medicine 2 195 787 -11%
and sports events, but the market continues to be supported by a Media 3 867 348 -1%
solid economy.
Telecommunications 3 131 107 1%
c. PRINT
The print market in Sweden is still in a slow but steady decline, both in
terms of readership and in the advertising market. In 2019 we will have
additional print medias with competitive packages offering high reach and
frequency to the advertisers, at a lower price then before. The large
newspaper Metro in Sweden has been closed down and its competitors are
now fighting for advertisers, which is leading to lower prices.
Total Digital 12.5 10.2 7.7 Total Digital 58.3 61.2 65.9
Total Digital* 12.5 10.2 7.7 Total Digital* 100.0 100.0 100.0
Online Video 19.8 15.9 30.9 Online Video 8.5 8.9 10.9
Social Media 29.5 20.6 0.4 Social Media 12.1 13.3 12.4
Paid Search 14.5 12.2 10.9 Paid Search 53.2 54.1 55.7
Programmatic Programmatic
n.a n.a n.a n.a n.a n.a
Spend^ Spend^
DENTSU AEGIS NETWORK *Includes Mobile/Tablet and Desktop, ^Subset of Total Digital Spend 53
SWITZERLAND: ‘The outlook for 2019 is less optimistic than previously thought, with an
expected GDP growth rate of 1.1%’
OVERVIEW OF THE TOTAL ADVERTISING MARKET The economic context AD SPEND PERFORMANCE BY CATEGORY
“The Federal Government’s Expert Group for economic forecasts is lowering At YTD March 2019, several major categories like Food, Retail, Campaigns
Year on year % growth at current prices its forecast for GDP growth in 2019 from 1.5% to 1.1%. The global economy and Finance show a heavy decrease in spending according to Media Focus
is losing more momentum than previously assumed, which is slowing down data. This is partly caused by the economic downturn in the second half of
2018 2019f 2020f Swiss foreign trade and investment activity. 2018, but it is also caused by the migration of budgets from offline media to
digital media, as ad spend by category is mostly only measured for
Switzerland 4.4% (5.8%) 3.7% (7.1%) 6.5% (6.7%) traditional media by Media Focus.
In the second half of 2018, Switzerland’s economy cooled off significantly.
The global economy and world trade lost momentum, which also curbed
Previous forecasts in brackets from January 2019 Swiss foreign trade, while domestic demand failed to stimulate growth.
Investment activity in particular weakened considerably. Top 10 Categories 2019f Gross Local 2019f vs. 2018
LATEST KEY AD SPEND TRENDS 2019f Currency Million YOY%
• Due to a weak second half of 2018, Switzerland’s economy cooled off The Expert Group expects both the domestic and the international economy
significantly and the outlook for 2019 is less optimistic than previously Food 439 -15.5%
to regain momentum only gradually in 2019. In particular, the outlook in
thought, with an expected GDP growth rate of 1.1%. This shows in YTD other European countries has recently become much gloomier, and growth Retail 385 -16.3%
March ad spend numbers by Media Focus, that were less than expected. forecasts for major trade partner Germany have been revised significantly
Projecting this development of the 2018 full year numbers, we expect less downwards. As a result, international demand for Swiss products is weaker Automotive 375 +4.5%
ad spend growth for 2019 than in the previous report. and the export economy is losing momentum.”
Campaigns 316 -12.2%
• While we actually expect overall ad spend in traditional media to decrease (Source: Economic forecasts by the Federal Government’s Expert Group – spring 2019)
in 2019, we assume that a big part of the heavy print losses is reinvested Finance 298 -13.4%
in online channels, that are measured and estimated by a separate survey.
THE 2020 AD SPEND FORECAST Tourism&Gastronomy 292 -2.1%
• Online ad spend numbers are heavily dependant on the “Media Focus
“The global economy is expected to gain moderate momentum in 2020.
Online Semester Report” that hasn’t been published for 2018 as of yet. Cosmetics&Body Care 267 1.0%
Provided that the international trade dispute does not intensify further,
Therefore, digital ad spend numbers for 2018 are still forecasts. However
global trade will also pick up again. This will support Switzerland’s export
we still expect digital ad spend numbers to rise, because agency reality Digital&Household 265 13.1%
economy. At the same time, domestic growth forces will gain in importance.
has shown that many clients have started shifting their budgets from
In particular, the willingness to invest is anticipated to increase considerably Events 261 -3.9%
offline media to their digital counterparts.
again and private consumption is set to grow somewhat faster in the wake
of stronger employment growth and rising real income. The Expert Group is Construction 233 -5.3%
THE 2019 AD SPEND FORECAST therefore forecasting higher GDP growth of 1.7% for 2020 (December 2018
In 2019, national parliament elections will take place in Switzerland. The forecast: 1.7%) with annual inflation of 0.6%.”
Source: FC done by Dentsu Aegis Network Switzerland based on Media Focus
main media categories for political campaigns are print and OOH media. (Source: Economic forecasts by the Federal Government’s Expert Group – spring 2019) Swiss Gross Advertising Pressure Statistics YTD 2019/3, Media Focus Online
Therefore, these categories should directly profit from the corresponding As economic outlook for 2020 remains moderately positive, we have only
Semester Report 2017/2 and industry expert estimations.
media campaigns. Over the past 8 years, average additional ad spend in slightly decreased our previous estimation for 2020.
political campaigns for national election years amounted to CHF 20 Million.
Therefore, the currently visible strong losses in print and the stagnation in
OOH ad spend may be alleviated by the election campaigns.
a. Search
There remains a lot of insecurity about the search ad spend numbers d. OOH
reported by Media Focus in the market, as they take up an all market ad The OOH market in Switzerland stays dynamic. Neo Advertising further
spend share that doesn’t reflect the reality within a media agency setting. establishes itself as a big player next to APG and Clear Channel by officially
Although it seems reasonable that a big share of search ad spend is done by joining the OOH industry association (AWS). Furthermore, all major OOH
Micro level local advertisers that have a different advertising behaviour than providers continue to invest in their digital OOH networks, resulting in a
large agencies, the overall share seems too high. Furthermore, the bigger inventory and larger ad spend. We expect this trend to continue, but
methodology and scope of raising the search ad spend numbers is still being with slightly decreasing growth rates overall. Furthermore, we expect a
calibrated by Media Focus as of the time of this report. Therefore, they higher level of OOH spending for the second half of 2019, as national
should be taken with a pinch of salt. Moreover the 2018 actual numbers are parliament elections are going to take place in October.
still pending as the “Media Focus Online Semester Report” hasn’t been
published for 2018 yet. e. Programmatic Advertising
Programmatic advertising in Switzerland has been heavily impacted by the
b. Newspapers & Magazines ad-fraud and ad-quality debate of the last few years. While originally the
Print ad spend has shown an exceedingly large decrease so far (YTD March programmatic dogma stated that advertising environment was mostly
2019). It remains to be seem to what extent this development will continue secondary to reaching the right person, clients and agencies have developed
in the remaining two thirds of the year. While Print media traditionally took a stronger conscience for the quality of delivered ad impressions. This
(and still takes) a large portion of ad spend in Switzerland, generally it is process has also been driven by 3rd party technology providers, that have
one of the categories that is suffering most due to the advancement of provided more transparency about ad-delivery.
online advertising. Also the number of advertising clients that insist on In the case of programmatic, this process resulted in ad spend being shifted
“digital first” media strategies continue to rise in number. from open exchanges to private deals, improving advertisers’ control of ad
environments. While this reduced the immediate amount of relevant
c. TV programmatic ad inventory, the improved level of quality ensures that client
trust in programmatic advertising remains intact and the share of online
Ad spend numbers for TV have turned out suprisingly well so far. As 2018
advertising continues to rise.
was a year with big sports events (Feb 2018 – Winter Olympics / July 2018
– Football World Cup), we previously expected TV ad spend to only rise on a
moderate level in 2019. Numbers so far are better than expected, but only
the summer months will show if this positive development will carry on for
the full year.
Total Digital 16.4 15.8 13.2 Total Digital 48.1 53.7 57.1
Total Digital* 16.4 15.8 13.2 Total Digital* 100 100 100
Online Video 16.0 18.2 15.7 Online Video 4.2 4.3 4.4
Social Media 7.4 26.1 18.1 Social Media 1.7 1.8 1.9
Paid Search 20.9 18.3 15.3 Paid Search 68.0 69.5 70.8
Programmatic Programmatic
7.1 17.0 12.9 2.9 2.9 2.9
Spend^ Spend^
OVERVIEW OF THE TOTAL ADVERTISING MARKET • Global or local events to affect spend in 2019
• However, we have seen a notable improvement in Q2 for Digital, perhaps
Year on year % growth at current prices
helped by the extension to Article 50 to the end of October, and the
outlook is again looking a little more favourable. This is almost an exact
2018 2019f 2020f
switch to last year when we saw a strong Q1 and a terrible Q2 due to
GDPR. Digital is again predicted to be the main driver of Ad Spend growth
UK 8.6% (6.5%) 6.3% (6.1%) 6.6% (7.1%)
in the UK in 2019
Total Digital 15.0% 10.4% 9.9% Total Digital 62.3% 64.7% 66.8%
Total Digital* 15.0% 10.4% 9.9% Total Digital* 100% 100% 100%
Display Banner 14.6% 12.0% 12.0% Display Banner 21.9% 22.2% 22.6%
Online Video 32.7% 22.0% 18.0% Online Video 17.2% 19.0% 20.4%
Social Media n.a n.a n.a Social Media n.a n.a n.a
Paid Search 14.3% 8.5% 7.7% Paid Search 49.5% 48.7% 47.7%
Programmatic Programmatic
20.0% 12.8% 11.8% 82.7% 84.5% 86.0%
Spend^ Spend^
DENTSU AEGIS *Includes Mobile/Tablet and Desktop, Subset of Total Digital Spend 59
NETWORK
Central &
Eastern
Europe
Market
60
BULGARIA: ‘Media market to start 2019 at new heights driven by increasing inflation’
OVERVIEW OF THE TOTAL ADVERTISING MARKET hand, in 2019 municipal elections will take place in Bulgaria. These elections Pharmaceuticals and Foods will remain the top advertising industries in the
will take place in all the regions in Bulgaria given that the goal is selecting Bulgarian market, the latter expected to reach 37% YoY growth as
Year on year % growth at current prices office-holders (mayors and councilors) in local governments. Therefore, compared to one-digit growth in 2018, with beers being the main driver for
regional and national media will both be used for conveying the candidates’ this outburst. A significant downward trend in terms of YoY growth is
2018 2019f 2020f
messages. On the other hand, European elections will also take place this estimated for the Telecommunication services, while the Household
year that will amplify the local and national media demand for inventory and Chemistry category is expected to recover and perform with a two-digit
Bulgaria 9.1% (9.1%) 9.5% (6.9%) 8.6% (7.3%)
will keep the inflation trend growing further. growth trend in 2019 as compared with 1% growth in 2018 vs. 2017.
This year does not have as intense a sports curriculum as 2018 but there
Previous forecasts in brackets from January 2019 will still be sports events of public interest, e.g. UEFA Euro 2020
qualifications that start in March 2019 and will continue till March 2020. Top 10 Categories 2019f Gross Local 2019f vs. 2018
2019f Currency Million YOY%
LATEST KEY AD SPEND TRENDS
• Scarce inventory in TV results in nearly 3% increase in the total YOY The economic context Pharmaceuticals 384,647,750 20%
percentage growth forecast. Economy growth and a reduced unemployment rate influence the increase
Foods 364,699,198 37%
• The reason for the increased YOY percentage forecast is mainly due to in household consumption:
scarce inventory in TV which boosts inflation rates further and influences The Bulgarian economy grew by 3.4% in Q2 2018. Still, this is the lowest Retail Outlets 267,641,745 15%
the upturn in expenditure in the medium. growth rate since 2015. The major reason for economic growth is the
Cosmetics 231,642,749 12%
• An uplift in inflation and cluttered inventory in radio has also led to 2% household consumption increase (1.8% for Q2 2018 and 4.7% FY 2018).
forecasted growth YoY for this medium as well. However, inflation is growing by 3.4%, majorly driven by the utility and Drinks 264,303,862 35%
rental costs which will reduce consumption at a certain point in time.
• Traditional media continues the trend of transferring their most interesting
Telecommunication 147,351,348 6%
TV content into interactive online platforms to meet the growing digital The labor market situation is positive, given that the unemployment rate
demand, especially for mobile. has reduced to 5.5%. This is considered to be the population’s economic Hobby. Fashion. Sport 115,849,622 22%
activity peak.
• The forecasted overall inflation in TV is now 13% with 2% additional
Financial Services 87,618,683 2%
growth from FIFA World Cup advertisers’ activities.
THE 2020 AD SPEND FORECAST Household Chemistry 78,654,607 16%
THE 2019 AD SPEND FORECAST The 2020 ad spend forecast is estimated to reach 8.6% growth with main
Motoring 53,307,139 3%
drivers being digital and TV. It is expected that mobile will grow steadily on
Total ad spend forecast for 2019 is forecasted to reach 9.5% growth YOY. It
the account of desktop ad investments reaching over 38% of total digital ad
is most likely to be affected by political rather than sport events. Media
expenditure. Digital will continue to take fare share from TV ad spend
inflation and current political stability will keep ad expenditure growth on a
reaching about one forth of total ad expenditure, while print will give fare
stable track.
share to radio. UEFA Euro 2020 and the Summer Olympics are the main
It is forecasted that 436 million BGN will be spent on ads during 2019. The
sport events that are expected to influence total ad spend.
forecasted inflation for 2019 is expected to reach 10%, mainly driven by the
scarcity of inventory in both TV and digital media.
AD SPEND PERFORMANCE BY CATEGORY
Retail proceeds to outperform the other categories in terms of YoY growth
Global or local events to boost spend in 2019
for a second consecutive year, and is forecast to slow down its upward
Political elections – both local and European – will keep the demand for
trend but still remain indisputably in the ad spend TOP 3 in 2019,
inventory high and will further boost ad spend in 2019.
overtaking Cosmetics.
This year is very intense with regards to political campaigns. On the one
b. Digital is closing the gap more aggressively with the market e. Slow down in social media ad investments growth YoY will start to
reaching new heights through mobility and personalization recover
The Bulgarian advertising market is steadily heading towards digital with Social Media is expected to recover form the slowdown of its growth YoY.
significant relocation of resources toward online media within the media During this and next year, the growth in the medium will stabilize and start
mix. This is additionally accelerated by the new media policies introduced by to gradually increase reaching nearly 20% YoY growth by 2020.
the major local TV media groups that had strengthened their digital The expectations are that the investment in social media will maintain a
proposition aiming to increase the ad expenditures in their online channels healthy level compared to 2018 – around 21 million BGN for 2019 and 25
million BGN for 2020.
throughout different techniques.
The shift from “traditional media” towards digital is forecast to grow steadily
in the next three years, reaching nearly 1/3 of total ad expenditures.
Technology solutions, especially mobile and programmatic, have already
established themselves as the major drivers. Despite the steady growth YoY
digital is not expected to outperform TV in the next 3 years.
Total Digital 21.1 21.8 20.6 Total Digital 21.0 23.4 25.9
Total Digital* 21.1 21.8 21.6 Total Digital* 100.0 100.0 100.0
Online Video 20.9 20.9 31.5 Online Video 16.5 16.5 18.0
Social Media 15.5 20.8 19.6 Social Media 20.4 20.3 20.1
Paid Search 15.4 16.3 18.3 Paid Search 24.1 23.1 22.7
Programmatic Programmatic
74.9 63.8 41.0 21.1 28.4 33.0
Spend^ Spend^
DENTSU AEGIS NETWORK *Includes Mobile/Tablet and Desktop, ^Subset of Total Digital Spend 63
CZECH REPUBLIC: ‘Strong inflation trends in TV’
LATEST KEY AD SPEND TRENDS 2019f Gross Local 2019f vs. 2018
Top 10 Categories 2019f
Further concentration on the Print market. Bauer Media sold their activities Currency Million YOY%
in Czech Republic to MaFra, a publishing house owned by the Prime Minister
Mr. Babis. This acquisition will make MaFra the biggest publishing house in Retail 17 950 10%
Czech Republic. The Czech economy is in good shape. An increase in TV
Finance 8 491 10%
investments for a third year in a row, has lead to strong inflation trends
in TV. Food 7 958 0%
Cosmetics 7 012 2%
THE 2019 AD SPEND FORECAST
Global or local events to boost spend in 2019
Media/Entertainment/Publishing 6 810 -5%
We expect that the total increase in 2019 will be 8.8% and will be driven
mainly by Digital and partially by TV media. There will be no major sports or Automotive 6 286 0%
other events.
Tourism/culture/leisure 5 954 -2%
BY MEDIA
a.
Strong inflation trends. Nova Group +12%, Prima Group +10%.
YOY change in broadcasted GRPs for Jan-Sep is +4%, and it is expected to
increase until the end of the year. Consumption of TV is not changing.
Duopoly of Nova Group and Prima Group will stay unchanged in 2019.
New TV channels have been unsuccessful.
b.
MaFra bought Bauer Media and created the biggest publishing house in
the Czech Republic.
c.
Through TV + Radio (Prima Group + Radio) packages, Media Club is pushing
an increase in share of investments to the radio stations represented by
them. Cooperation between Czexch Radio Center and Media Bohemia will
continue in 2019.
d.
Bigmedia gave up fighting against the government about a new law
prohibiting billboard signs along the highways and started to dismount
Their signs.
Unclear situation as to who will be selling CLV in the underground in Prague
after the contract between Prague and EuroAWK expires.
Popularity and usage of digital signs is increasing.
e.
One of biggest e-commerce players, Mall.cz, has started its own TV – Mall TV.
Total Digital 12.9% 21.4% 22.8% Total Digital 37.6% 41.9% 46.6%
Total Digital* 12.9% 21.4% 22.8% Total Digital* 100% 100% 100%
Display (Banners) -10.3% -7.7% -8.3% Display (Banners) 20.0% 15.2% 11.3%
Online Video 23.3% 18.9% 22.7% Online Video 28.4% 27.8% 27.8%
Social Media 28.6% 66.7% 46.7% Social Media 13.8% 19.0% 22.7%
Paid Search 15.7% 24.5% 22.7% Paid Search 27.1% 27.8% 27.8%
Programmatic Programmatic
32.0% 36.6% 41.7% 40.6% 45.7% 52.7%
Spend^ Spend^
DENTSU AEGIS NETWORK *Includes Mobile/Tablet and Desktop, ^Subset of Total Digital Spend 66
ESTONIA: ‘TV grows faster than local online’
OVERVIEW OF THE TOTAL ADVERTISING MARKET THE 2019 AD SPEND FORECAST Finance & Insurance
As the local Parliament Election was on the 3rd of March and the European In 2018 in the Finance & Insurance sector, the most used media was TV at
Year on year % growth at current prices
Parliament elections were on the 26th of May, we are expecting market 57%. Then Digital at 25% and OOH 7%. TV group share is as follows: PMG
growth of 3.6%. with 44%, then AMB with 44% and BMA at 10%. In this sector, the three
2018 2019f 2020f
most active advertisers are Placet Group at 10%, IPF Digital Estonia at 6%
The economic context and Swedbank with 6%.
Estonia 2.4% (3.6%) 3.6% (4.3%) 3.1% (3.7%)
According to Statistics Estonia, in 2018, the gross domestic product (GDP)
of Estonia increased by 3.9% compared to 2017. Telecommunication
Previous forecasts in brackets from January 2019
The Ministry of Finance is prognosing nominal GDP growth of +3% for 2019 The three most active advertisers are Telia 23%, Elisa 13% and Tele2 11%.
and around 3% for 2020. The Estonian Bank estimates economic growth of The three top used medias are: TV 68%, online 18% and OOH 6%. Here
LATEST KEY AD SPEND TRENDS +3.5% for 2019 and around +2% for 2020. AMB has the highest share at 61%, and PMG follows with 31%.
• There is tough competition between big Media Groups: Postimees Media
Group (previously Eesti Media Group) and AMB. AMB is investing more The main contributors to growth covering the majority of economic activities Pharmaceuticals
into the TV online platform TVplay. Online video is growing fast and is were construction, manufacturing, professional, scientific and technical Sandoz D.D. with 18% has the highest SOS, followed by Glaxosmithkline
great for incremental reach. There is a trend of selling packages (one activities. Net taxes on products did not increase in 2017, while in 2018 with 13% and Reckitt Benckiser with 13%. The most used media is TV at
package throughout one media group) and special content solutions – to their growth recovered. In 2018, the exports of goods and services 86%, Digital at 4% and Newspapers and Magazines both at 4%. In this
have advertisers’ media communication on several different platforms of increased 4.3%, mainly due to the growth of the services exports. sector, AMB has the higest share of 56% and PMG follows with 33%.
one media group.
Domestic demand also produced the best results in the last 6 years,
• TV viewing patterns are changing and more people have started watching growing 5.3%.
recorded TV content on demand rather than live TV. Approx. 20% of Top 10 Categories 2019f Gross Local 2019f vs. 2018
2019f Currency Million YOY%
ratings come from viewers using TSV to watch PT programs. ETV
viewership is increasing and commercial channel programming is THE 2020 AD SPEND FORECAST
Food 83 -4%
decreasing due to changing program policy in ETV. • While GDP will be approx. 2.5% in 2020, we predict 3.1% growth of the
ad market, which will be mostly driven by an increase in media prices. Retail 70 7%
• As one third of the Estonian population are Russian speakers, it is
important to reach for such a big target group. The audience that can be Higher media prices are a result of different factors: deficit of inventory in
Pharmaceuticals & Med. 50 -3%
reached via BMA channels is ageing every year – the proportion of the TV and local online, a new high season cofficient in OOH, and new product
economically active audience continually decreases. For the younger prices and the price of content marketing in online and radio. Finance & Insurance 46 10%
Russian TG, the most popular channel is TNT (PMG). RTR (AMB) was the
Telecommunication 43 -12%
Russian viewers’ market leader in 2018. AD SPEND PERFORMANCE BY CATEGORY
• Local online channels are trying to compete with international online Retail Automotive 37 -5%
channels by offering more and more attractive content. Still the This sector is very competitive. Most active are Coop 17%, Rimi 16%, Beauty & Personal Care 37 1%
international online channels Facebook & Google’s investment will Selver 16% and Maxima 15%. The most used medias are TV 61%, online
continue to grow. Local online growth has slowed down, but will certainly 13%, OOH 9% and direct mail 9%. In the retail sector, AMB and PMG Beverages 28 -10%
be positive. (previously Eesti Meedia) have similar shares: the first has 48% and the
Media 19 -20%
• Out-of-home (OOH) has benefited from significant technological second has 42%.
innovation in recent years. Digital displays across all formats have Tourism & Transportation 18 6%
transformed the medium. OOH growth will come from digital formats
useage - currently 25% of total OOH is digital.
a. Television c. OOH
Television net ad-spend rose 3.1% in 2018 and the estimate for 2019 is 3%. The Digital part of OOH is increasing – the digital formats share in 2017 was
Commercial channel share was 47% and continues to decrease due to the 23% and 33% in 2018. Providers are Digiekraanid, Linna Ekraanid,
popular content of the State channels: ETV and ETV 2. Live daily reach is JCDecaux and Public-TV. The top 3 OOH companies are JCDecaux with 47%
stable, but consolidated daily reach is increasing. At the beginning of 2018, (including 12% digiscreens), Digiekraanid with 20% and Linna Ekraanid with
official currency is 18 -49 in both big TV Groups AMB and Postimees Grupp 10%. The biggest shopping centers and busiest crossroads in Tallinn are
(previously Eesti Meedia Grupp). covered with digital billboards and city lights.
The most common formats used in 2018 were: bus shelters 29%, outside
TSV viewing share continues to increase in all TG, 20% of commercial Led screens 26% and billboards 14%. While bus shelters are the most
channels’ top original programs ratings come from TSV. Russian viewing common formats to use, they are losing their share rapidly. In 2012, bus
habits are changing - PBK are losing their viewers, while TNT share is shelters share was 61%.
increasing, especially in younget target groups. The TV market is still
difficult with more demand than supply of TV ratings due to lost viewers and d. Radio
a strong market, which leads to an increase of GRP/sec prices for 2019 at The biggest growth in the Estonian ad net marketing was Radio – 9.1%. The
approx. 10% for both of the big Media groups (AMB & PMG). consolidation of radio groups is continuing. Postimees Gupp (previously
Eesti Meedia Grupp) owns the Russian radio Narodnoje and DFM, the
b. Online leading radio group. Sky Plus Grupp launched Rock Radio in 2017 whis is
Both local and international online together hold first position in Estonia. now popular among men. The leading radio channels are: Sky +, Star FM
2018 was surprising – local internet growth was minimal at only +0.5%. The and RetroFM.
most popular local sites are www.delfi.ee and www.postimees.ee.
International online is approx. the same level as the local online, which e. Print
means 20 mio for both, and the real situation is that online ad-spend share All the biggest Daily Newspapers have local owners as they invest in print.
is the biggest in the market. Mobile internet weekly reach was 85.5% in Print content is capacious and interesting therefore print sells well.
2018. Facebook has the absolute social media monopoly in Estonia in terms Newspaper’s situation was stable in 2017 vs. a decrease of -0.4% in 2018.
of usage and growth estimations. Postimees Grupp owns the biggest newspaper in Estonia - Postimees and
Paid Search - Google is a dominant player in the search area. Paid search several local newspapers. Ekspress Grupp owns Eesti Ekspress, Maaleht and
has established a strong position as being an inseparable part of almost Õhtuleht. Both groups are investing a lot into web platforms and are
every campaign and budget, therefore advertising costs are still growing in developing content marketing.
paid search. Magazines - Magazine share is decreasing as the biggest Newspapers are
Local VOD is decreasing dramatically – 17% 2017 vs 2018, Internationbal adding extra content. Magazines ad net decrease was the biggest at -3.3%.
VOD (YouTube, FB) is increasing. Local VOD reaches are low, compared to The biggest magazine’ group was Ajakirjade Kirjastus, with magazines split
YouTube. between Ekspress Grupp and Õhtuleht.
Total Digital 0.7% 2.9% 3.0% Total Digital 35.6% 35.3% 35.3%
Total Digital* 0.7% 2.9% 3.0% Total Digital* 100% 100% 100%
Online Video 2.0% 2.0% 2.0% Online Video 6.4% 6.3% 6.3%
Social Media 1.9% 4.9% 5.6% Social Media 14.8% 15.1% 15.5%
Paid Search 1.0% 3.6% 2.0% Paid Search 14.8% 14.9% 14.8%
Programmatic Programmatic
n.a n.a n.a n.a n.a n.a
Spend^ Spend^
DENTSU AEGIS NETWORK *Includes Mobile/Tablet and Desktop, ^Subset of Total Digital Spend 69
HUNGARY: Solid growth but still incalculable future
OVERVIEW OF THE TOTAL ADVERTISING MARKET HOW THE ADVERTISING MARKET IS CURRENTLY PERFORMING AD SPEND PERFORMANCE BY CATEGORY
Internet is the main driver of the growth where all digital media types are Trading firms
Year on year % growth at net-net prices improving. For offline media, TV still owns more than a quarter of total Hypermarkets, electronics retailers and online stores had the highest share
media investments, while for other classic media types, investments are of total media expenditure in 2018, closing in on the leadership of OTCS
2018f 2019f 2020f slightly decreasing in the long term where minor corrections can only after 3 years.
compensate the slope for a while. Medicinal Products (OTC)
8.1% 6.6%
Hungary 9.8% (12.4%) Many macroeconomic indicators show positive trends, such as solid
(4.1%) (4.9%) Despite losing its leading position, OTC brands such as Algoflex, Magne B6,
consistent GDP growth since 2013, while both Nielsen and Ipsos reported Normaflore, etc. still invest heavily in media with a strong focus on TV.
Previous forecasts in brackets from June 2018
record-high consumer confidence in 2018. But trends in the Hungarian
State Institutions and Development, Social Organizations
LATEST KEY AD SPEND TRENDS media market do not necessarily follow international trends or even the
changes in the attention of the audience. Conditions of the Hungarian The importance of this category is still growing massively. Beside the
• Inspite of positive trends in macroeconomic variables, long term planning
advertising industry have worsened due to various political acts, and further aforementioned government and institutions as advertisers, political parties
of consumption or media expenditure is still difficult due to incalculable
limitations might come. The government is influencing the media market in and organizations from all sides were also active during the campaign for
macroeconomic policy and the government’s continuously growing interest
several ways: the parliamentary election. OOH is the main battlefield for them, with a
in the media market.
significantly higher focus on TV and a relatively low digital share compared
• Three submarkets can be observed in the Hungarian advertising market: As a direct advertiser: the Prime Minister’s Office is still one of the biggest
to the total market.
advertisers in Hungary, despite the fact that its expenditure decreased by a
fifth in 2018. Other state institutions and state-owned companies are also Entertainment and Sporting Events
Politics-driven market In 2018, the FIFA World Cup was one of the main drivers of this category.
important media investors and, together with the government-friendly
Due to the state’s growing interest, there is a higher and higher market companies, could seriously influence the total market, accounting for around However many other cultural products have also had significant investments
share connected to the government in direct or indirect ways. Media one-fourth/one-third of the market. such as concerts, festivals and movies. Furthermore, gambling is also an
expenditures by the Prime Minister’s Office (incl. state-owned companies) important part of this category.
As a regulator: after many changes in media law, further regulations could
are very important drivers behind the market growth (e.g. 11% of total TV
be expected to limit free trade again. Previous regulations such as the fixed
expenditures comes from this submarket according to MEME) and this is 2019f Net-net Local 2019f vs. 2018
agency fee have reallocated some expenditure into the direct market and Top 10 Categories 2019f
an almost exclusive market only for a limited number of media owners Currency Million YOY%
influenced the share between channels.
and agencies.
As a media owner: businessmen connected to the government party have Trading Firms 21 289 1.20
Direct advertisers
dramatically increased their share of every media type recently (e.g. KESMA,
Similar to politics-related media investments, share of direct orders are also Medicinal Products (Otc) 20 584 1.10
At Media, Tv2 Group, etc.). By having interests in many media types, the
on the rise, although only some media types are influenced by non-proxy
government also can influence the media market, both in content and
deals such as listings or press. Effects of political acts are important drivers Entertainments & Sporting events 14 985 1.14
inventory.
behind direct investments, for instance the 15% fixed agency fee pushed
some advertisers to having close agreements with publishers/sales houses State Institutions & Development 12 917 1.19
of certain media types where they felt knowledge is less important such as RATIONALE FOR ANY FORECAST CHANGES COMPARED TO THE
Mass Media 10 803 1.30
in the case of radio or press. SoHo companies also prefer direct deals on the PREVIOUS REPORT (JANUARY 2019)
digital market because of similar reasons. This submarket also showed It is difficult to make any forecasts due to the government’s non- Cars, Vehicles 9 479 1.20
extensive growth and professional media agencies are less involved if at all. conventional macroeconomic policy and direct influence into the media
Banking 7 301 0.93
Free trade or Agency Market market. The market sometimes acts as a roller coaster, first going downhill
The situation of media agencies is more difficult as they have had modest for several media types after the interference of the state which they then Mobile Telecommunication 3 948 0.81
improvement compared to the above two. The increase could have partly try to compensate for through regulations and redirecting expenditures. Catering 3 637 1.05
come from specific fields where their investments into professional staff, Additionally, many media owners are not forced to cooperate with agencies
or independent advertisers below them as they can sell a high share of their Chocolates, Confectionery 3 409 1.24
data and software are required such as programmatic. Quality-focused
clients are still preferring the expertise of agencies. inventory to the government and their alliance easily.
DISPLAY VIDEO
Display remains strong with the highest share of total digital media but its Besides the clear dominance of YouTube, local stream sites are emerging.
internal structure is changing due to the rise of programmatic, increase of Online video offers considerable alternatives alongside or sometimes even
premium inventory and video formats. Dynamic gain of mobile also forms instead of TV. Many big media houses have established their own stream
the profile of display. The importance of international giants such as Google sites and distribute video content previously broadcasted by TV channels,
(GDN) and Facebook is also increasing, but this could be changed due to which could be the surviving model for classic media brands such as Tv2.
the strengthened Hungarian programmatic market. As a sign of this, local
media owners are more open to cooperating with agency trading desks such PRINT
as Amnet, but it seems that the strengthened Hungarian programmatic There is a shrinking in readership, content and circulation numbers. Besides
market still cannot compensate it. this the government’s intent to restructure has also not had a good
influence on the press market. (Such as establishing KESMA, the state’s
OOH central publishing company.) Now the state is trying to turn the
Although appearing stable with heavy growth in both 2017 and 2018, OOH's decreasing incomes around by ordering a massive amount of sites in
future is questionable as billboard – and other large formats - could newspapers and magazines – part of them also owned by the government
disappear completely in 2020 due to the new act passed in June. Smaller and its halo. Due to this the print market improved for 2017 and a further rise
inner-city sites such as city light posters could remain, however the continued for newspapers, while media expenditure in magazines decreased
by 6% this year.
currently offline touchpoint is still waiting for its renewal with new digital
based solutions. According to a new law modification, entered in January
2018, local municipality can impose tax on the advertisement carrier. As RADIO
media owners are unable to pay this themselves, they charge this tax to the Radio is a real rollercoaster market because of the changes in political
advertiser – which has increased media prices and caused a historically high relationships. Today government-friendly businessmen own all the important
media inflation in the OOH market. radio channels and networks next to the state-owned public service
channels. Classic radio is losing its audience among younger age groups:
TV according to CCS 2017, about half of 15-24 year olds never listen to the radio.
Online radio has a considerable audience but not a typical alternative for
Hungarians still spend many hours in front of their television (242 minutes a
youngsters since radio has to compete with many other ways of listening to
day for the total population in January-September 2018 – Nielsen Audience music such as YouTube, streams like Spotify, etc. However Retro Radio - the
Measurement). However, in spite of the wide range of choice it is harder to first channel with nationwide coverage - was launched in 2018, and Radio 1
reach certain target groups, especially youngsters. network also offers countrywide technical penetration, which will both
influence ad expenditure.
Total Digital 13.7 13.4 11.9 Total Digital 39.1 41.0 43.1
Total Digital* 13.7 13.4 11.9 Total Digital* 100.0 100.0 100.0
Display (Banners) 10.6 9.9 8.0 Display (Banners) 40.5 39.3 37.9
Online Video 63.9 13.5 5.3 Online Video 4.6 4.6 4.3
Social Media n.a n.a n.a Social Media n.a n.a n.a
Paid Search 13.9 20.6 18.1 Paid Search 40.3 42.8 45.2
Programmatic Programmatic
45.3 43.0 38.9 23.0 29.0 36.0
Spend^ Spend^
DENTSU AEGIS NETWORK *Includes Mobile/Tablet and Desktop, ^Subset of Total Digital Spend 72
LATVIA: ‘Major turmoil in the TOP10 most advertised category list’
OVERVIEW OF THE TOTAL ADVERTISING MARKET Although the first quarter of 2019 was less active among existing Finance
advertisers compared to 2018, the opening of Akropole in March gave the In October 2018, new legislature was approved regarding advertising of the
Year on year % growth at current prices category a boost. whole consumer loan category. The legislation was targeted mostly at fast-
Remedies loan companies, but it will have an effect on most of the loan providers.
2018 2019f 2020f
Some of the larger advertisers in the category (e.g. Takeda) have been A transitional period has been set and the new restrictions will come into
Latvia 5.8% (4.6%) 2.3% (2.6%) 4.4% (4.8%) significantly less active in 2019 Jan – Mar compared to the same period in effect on the 1st of July 2019. However the drop of advertising investments
2018. Despite the fact that advertising will most likely pick up the pace in in this category has already become apparent – the loan category dropped
the remaining year, the overall growth estimation remains negative. by -46% in 2019 Jan – Apr compared to the same period in 2018. And after
Previous forecasts in brackets from January 2019
Internet the transitional period the drop is only going to increase, thus contributing
LATEST KEY AD SPEND TRENDS Some of the largest online stores had an unusually active first quarter in to an almost -60% yearly decrease of the category.
• The growth in 2018 has been slightly larger than previously estimated. 2018, however since then monthly advertising investments have stabilized Furniture
• But the growth figures for 2019 and 2020 have been slightly reduced, and have remained stable through Jan-Apr 2019. Therefore the overall On the 30th of August 2018, Ikea opened its first shopping center in Latvia.
mostly due to a significant decrease of advertising investments by the growth estimation is negative compared to 2018. In 2019, Ikea immediately entered the category’s TOP3 advertiser list. From
non-banking loan category, that is under pressure due to new legislation. Cars Jan – Apr, Ikea’s share of ad spend was 21%, and it has led to overall
In Latvia sales of new cars have been constantly growing for the last couple growth of the category, especially Jysk which is a direct competitor to Ikea.
THE 2019 AD SPEND FORECAST of years, which is different from other western European countries where Building Materials
The European Parliament elections had little effect on the advertising sales of new cars have slowed down. Consequently, the advertising Currently the building sector is booming – labor costs have grown
market as previously expected, especially compared to the Parliament investments in this category have been steadily increasing and this trend significantly and so have building material costs. Consequently the
elections that took place in October 2018 and the Municipality elections will likely continue in 2019 as well as 2020. competition in the category is intensifying and advertising investments by
in 2017. Concerts, Festivals, Shows top sellers are growing. The largest growth has been for K-Senukai, which
The economic situation in Latvia has been improving for a while and income has almost doubled its ad-spend in 2019 Jan – Apr compared to the same
The economic context
has grown faster than inflation, thus allowing people to spend a larger share period in 2018.
Currently the state of the economy is good and it has consequently been
growing. The Ministry of Finance estimates the real GDP growth for 2019 of their income on different entertainment events.
Top 10 Categories 2019f Gross Local 2019f vs. 2018
will reach +3.2%, with average monthly wage growth at +6.5%, thus Mobile Communication 2019f Currency Million YOY%
outpacing the inflation that is expected to reach 2.5%. The unemployment Mobile communication has long been one of the top advertised categories.
Retail 26.8 m€ +1.8%
rate in 2019 is also expected to reach 6.3%, nearing an all time low. The competition is mainly between three operators, therefore the category
is saturated. Partly due to the ever decreasing pricing of mobile plans, Remedies 18.6 m€ -2.1%
AD SPEND PERFORMANCE BY CATEGORY operators have not been able to increase their advertising investments as Internet 17.5 m€ -5%
much as they did a couple of years ago.
Retail Cars 13.3 m€ +2.7%
Aside from mobile operators, in the last couple of years mobile phone
There are huge changes expected in the competitive environment of Concerts, Festivals,
producers (Samsung, Huawei) have become increasingly active in terms of 12.6 m€ +4.5%
shopping centers by 2020 – significant expansion of two of the largest Shows
advertising. However recent restrictions imposed on Huawei by the USA
shopping centers, as well as a newly opened (Mar 2019) shopping center Mobile Communication 12.4 m€ +2%
could negatively influence advertising investments by Huawei (in 2019 Jan –
Akropole, that is currently the largest retail space in Latvia. In combination
Apr ~11% of the category) thus slowing down the growth of the whole Finance 11.3 m€ -58%
with the negative demographic tendencies, this will lead to approximately
category.
+28% increase of GLA (Gross Leasing Area in m2) per capita. Such changes Furniture 10.1 m€ +9.2%
are very likely going to intensify the competitive environment between the Building Materials 9.3 m€ +56%
shopping centers and should have a positive effect on advertising
Sweets & Confectionary 6.7 m€ +/-0%
investments in the Retail category.
In an unprecedented deal for Latvia in 2017/2018, providence equity (Bite) Small formats – JCDecaux is developing a premium DOOH network
bought the entire MTG Baltics business creating the new TV group – All approximately the size of city lights in the city center and will start selling in
media Baltics. This deal includes in itself even more risks than that of 2012 July 2019.
when MTG bought LNT. Consequently it is under strict supervision by the
Competition Council. One of the Competition Council’s prerequisites for this Clear Channel has chosen a different path – it is developing a network of
deal to be allowed was a completely transparent & non-discriminatory small digital stands in Latvia’s largest shopping centers that can be bought
advertising sales policy. In theory it was supposed to mean completely at least partly programmatically. Currently Clear Channel is already
abandoning historical buying conditions for all clients and applying one operating in three shopping centers – Domina, Riga Plaza, and Akropole.
publicly available Rate Card. The DOOH trend will clearly be the main shift in the existing OOH landscape
in the upcoming years.
However due to the fact that these events occurred at the very end of 2017,
when most advertisers had already finished budgeting for next year and The growth rate of Online video remains high due to constantly
when such a move would mean that for some clients in some channels growing TV spot advertising prices
inflation could reach +300% and more (base price + all the new indexes), The constantly increasing prices of regular TV advertising for the past
the Competition Council agreed to soften the transition period of 2018 by couple of years has narrowed the gap between TV and Online video.
limiting the weighted base price (new indexes should still be applied) of all Although online video is still more expensive, an increasing number of
AMB channels (TV3 & LNT can no longer be freely bought separately) advertisers are implementing it in their routine media plans.
inflation to +25%. As a result, online video has grown significantly from ~1.7mEUR in 2015
to an estimated ~5.4mEUR in 2018. This trend is likely to continue in
However starting from 2019 there are no more exceptions to the official 2019 as well, when online video is expected to reach ~6.9mEUR in
rate card. advertising investments.
Total Digital 10.1 10.6 12.4 Total Digital 29.0 31.3 33.7
Total Digital* 10.1 10.6 12.4 Total Digital* 100.0 100.0 100.0
Online Video 23.2 27.3 25.0 Online Video 20.4 23.5 26.1
Social Media n.a n.a n.a Social Media n.a n.a n.a
Paid Search 16.9 21.4 25.0 Paid Search 12.4 13.6 15.1
Programmatic Programmatic
26.6 30.1 31.5 31.1 36.5 42.7
Spend^ Spend^
DENTSU AEGIS NETWORK *Includes Mobile/Tablet and Desktop, ^Subset of Total Digital Spend 75
Lithuania: ‘2019 ad market boost influenced by major
political events’
OVERVIEW OF THE TOTAL ADVERTISING MARKET Weaker-than-expected euro area growth could dampen growth prospects,
while Brexit may lower emigrants’ remittances. A faster-than-expected rise
Year on year % growth at current prices in unit labour costs could harm competitiveness. On the upside,
implementation of productivity-enhancing reforms could boost the outlook.
2018 2019f 2020f
Lithuania 4.9% (3.9%) 7.4% (4.3%) 3.0% (3.6%) THE 2020 AD SPEND FORECAST
2020 ad spend is forecast to show moderate growth of 3% due to the
expected slow down of the economy influenced by “Brexit”, but on the other
Previous forecasts in brackets from January 2019
hand ad investments will be accelerated 1-2% by the 2020 Summer
Olympics.
LATEST KEY AD SPEND TRENDS
• Actual 2018 market growth was 4.9% which increased by 1% p.p. vs. the AD SPEND PERFORMANCE BY CATEGORY
2018 forecast. Continous competition in Retail, Pharmacy, Beauty and Personal Care will
• Market experts (media owners, media agencies and advertisers) are inrease these categories’ ad spend by 80 millions euros gross, while
optimistic due to the additional political events advertising, so the 2019 Telecommunications, Media and Automotive will suffer from decline.
growth forecast (7.4%) is significantly higher vs. the initial 4.3%. The Still, overall gross spend growth will be from 8-10%.
main influence is higher investments in digital which will inrease by 13.1%
(digital investment has a 41.5% share of ad spend so it has a major
impact on the whole ad market forecast). 2019f Gross Local 2019f vs. 2018
Key categories 2019f
• It is recommended to allocate at least 5% more media budget in 2019 vs Currency Million YOY%
2018 in order to stand out in the growing advertising clutter.
Retail 178 12%
BY MEDIA
a. DIGITAL
Digital media is the biggest media (from 2016) in terms of revenue from
advertising. In 2019, it is expected that it will exceed 40% of all ad spend.
Desktop and mobile ad spend will each have a 50% split of Digital spend. Online
video and social will grow at high speed by 41% & 27%. Despite advertisers
increasing the budget on global networks (Google, Facebook, YouTube,
Instagram, etc.), the local players will have a positive turnover of +4.5%, but
their growth will be from local video incomes.
b. TV
Although online video is growing fast, traditional TV remains the biggest
audio-visual format channel (TV market is 3.8 times bigger vs online
global + local video ). BMA Russian group has started to sell one more additional
channel “Dom kino” (4th channel, in addition to PBK, NTV, REN) and has launched
TG groups buying pricing. “Star media” TV group has started sales on the Russian
channel “THT” but due to low channel share (0.3%) and competition with the
four BMA russian channels, it will not achieve high incomes.
c. RADIO
In 2019, growth will be limited to 3.5%. M-1 group (TOP3 stations in monitoring
M-1, M-1 plus, Lietus) will increase its gross share up to 48% in 2019 vs. 46.9%
while 2nd Tango group (top stations in monitoring Radiocentras, Rusradio, ZIP)
will lose 1.7% of its share (40% forecast in 2019 vs. 41.7% in 2018).
d. OOH
In 2018, this media grew by 20% because two OOH providers “Neoreklama” &
“Kauno arka” were added into the monitoring database. OOH growth of 6.1% is
the 2nd biggest of all media types, and it will be influenced by additional budgets
from political advertising.
e. Print
In 2019, newspapers will shrink by -2.3%, while magazine incomes will remain
stable (the results would be lower if there were no political events in 2019).
Total Digital 5.9 13.1 5.3 Total Digital 39.4 41.5 42.4
Total Digital* 5.9 13.1 5.3 Total Digital* 100 100 100
Display Banner 18.7 6.5 2.0 Display Banner 58.8 55.5 53.9
Online Video 7.0 41.8 8.5 Online Video 14.5 18.3 18.9
Social Media -7.1 27.8 8.9 Social Media 12.6 14.3 14.8
Paid Search -10.0 -5.6 11.8 Paid Search 11.5 9.6 10.2
Programmatic Programmatic
14.5 27.3 11.0 54.1 60.9 64.2
Spend^ Spend^
DENTSU AEGIS NETWORK *Includes Mobile/Tablet and Desktop, ^Subset of Total Digital Spend 78
POLAND: ‘Economic slowdown fears’
Total Digital 8.5 7.8 7.5 Total Digital 30.3 31.4 32.4
Total Digital* 8.5 7.8 7.5 Total Digital* 100 100 100
Display Banner 4.2 3.3 3.0 Display Banner 27.5 26.4 25.2
Online Video 11.3 11.1 9.8 Online Video 9.8 10.1 10.3
Social Media 30.5 22.5 20.0 Social Media 19.4 22.1 24.6
Paid Search 4.3 4.8 4.3 Paid Search 32.6 31.7 30.7
Programmatic Programmatic
n.a. n.a. n.a. n.a n.a n.a
Spend^ Spend^
DENTSU AEGIS NETWORK *Includes Mobile/Tablet and Desktop, ^Subset of Total Digital Spend 81
ROMANIA: ‘High growth of TV prices’
OVERVIEW OF THE TOTAL ADVERTISING MARKET The trend of a decrease in economic growth, which started in 2018, will 2019f Gross Local
continue in 2019 due to both internal and external reasons. Top 10 Categories 2019f vs. 2018
Currency (RON)
Year on year % growth at current prices 2019f YOY%
For this year, the agriculture and trade sectors are forecasted to have the Million
most favorable evolutions, while the transportation services could see an
2018 2019f 2020f Pharmaceutical RON 13,906 4%
increase as a consequence of the policies to stimulate consumption.
Cosmetics & Personal Care RON 7,750 5%
Romania 11.2% (7.0%) 12.2% (6.5%) 8.6% (6.8%)
THE 2020 AD SPEND FORECAST Food RON 7,467 -1%
Previous forecasts in brackets from January 2019 For 2020 the projection for the country's gross domestic product (GDP)
growth is about 3.6% and this should barely influence the Romanian media Drink RON 5,340 3%
LATEST KEY AD SPEND TRENDS market. The composition of growth is expected to remain fairly stable, with
Retail RON 5,274 -4%
• In Q4 2018, PRO TV (our TV market leader) released a very aggressive private consumption still the main driver; the evolution of investment in
sales policy for 2019, stipulating tremendous increases versus the 2019 will largely depend on the impact of policies introduced in December Household Care RON 3,524 4%
previous year. Once the trend was set, it was soon followed by the next 3 2018 concerning the banking, energy and telecommunications sectors.
Telecoms RON 2,516 -4%
TV audience providers on the market, so we ended up with an overall
market double-digit average inflation.
In 2019 we’ll still have to cope with double-digit market inflation, mainly Finance RON 1,993 -1%
• To fight ratings and affinities decline, broadcasters have massively resulting from the above-mentioned factors, but also from: the upward
invested in local productions (mainly sports entertainment reality shows Motors RON 1,321 3%
trend of the macroeconomic indicators, the TV market dynamics (in terms
and series). of both GRPs and net spend), the limited GRPs inventory, the governmental Toys/ Sport Equipments RON 1,039 -2%
• Besides buying terms optimization, advertisers struggle for elections and the significant investments in the production of local content.
visibility/distinctiveness/premium-ness -> big opportunity to charge
higher prices/surcharges for better placed, more creative “out-of–break”
THE AD SPEND PERFORMANCE BY CATEGORY
communication (association with premium shows, brands integration into
content, etc.) In 2019, we expect that the 2018 main categories will remain similar to
previous years, with “Pharma” in first position, closely followed by
“Cosmetics & Personal Care” and “Food”.
THE 2019 AD SPEND FORECAST
We expect all categories to experience slight growth, except “Food”, “Retail”,
2019 will be an election year on two fronts: the euro-parliamentary and
“Telecoms” and “Finance”. Due to a lack of monitoring data on Social media,
presidential elections. The elections for the European Parliament will be held
Search etc., and with some budgets moved from classical digital banners to
in Romania on May 26th; the country has 33 seats in the European
these media (especially FB), some categories should have a higher growth.
Parliament, one more compared to the last elections.
e. OOH
b. Digital
The first OOH audience study is not yet available - the work is still in
Digital video content is receiving more and more investment as advertisers
progress.We expect to have the first data starting at the end of Q3 2019.
are pushing for video advertising. Video prerolls are preferred mainly
because of brand safety and viewability concerns and the need to capture The General Council of Bucharest City Hall adopted two decisions in August,
the user’s attention. Big international media players Google and Facebook that have a significant impact on the advertising industry (a draft decision
are now focusing more on the Romanian market. Google opened direct regarding local regulation of the placement and authorization of advertising,
support for WAZE in Romania (mainly for big agencies and big clients). and the draft decision on the establishment of the Municipal Advertising
Facebook has been intensifying its presence in Romania in the last 12 Company and the allocation of the public service regarding the organization
months with more meetings and seminars for big advertisers and the main advertising to this new company). These two decisions have not yet
media agencies. been implemented.
Total Digital 10.0 15.0 15.0 Total Digital 21.5 22.0 23.3
Total Digital* 10.0 15.0 15.0 Total Digital* 100 100 100
Display Banner 0.8 3.0 4.1 Display Banner 36.3 32.5 29.4
Online Video 8.4 14.0 12.2 Online Video 44.1 43.7 42.7
Social Media 7.9 13.1 12.9 Social Media 29.4 28.9 28.4
Paid Search 37.4 39.6 35.0 Paid Search 19.6 23.8 27.9
Programmatic Programmatic
17.8 25.7 24.4 32.0 35.0 38.0
Spend^ Spend^
DENTSU AEGIS NETWORK *Includes Mobile/Tablet and Desktop, ^Subset of Total Digital Spend 84
RUSSIA: ‘Market growth slows down’
OVERVIEW OF THE TOTAL ADVERTISING MARKET RATIONALE FOR ANY FORECAST CHANGES COMPARED TO THE
Top 10 Categories 2019f Gross Local 2019f vs. 2018
PREVIOUS REPORT (JANUARY 2019) 2019f Currency Million YOY%
Year on year % growth at current prices
The previous forecast was lowered from 7% to 5% due to the current
decline in TV ad spend. In Russia, TV is the media with the second highest Retail 51 218 7%
2018a 2019f 2020f
share of ad spend (~40%). There was a decrease in TV ad spend at the
Medicine 41 262 0%
beginning of 2019. As TV viewing continues to decline, and audiences switch
Russia 12.3% (12.0%) 4.5% (6.9%) 5.8% (6.7%)
from traditional TV to other screens, advertisers are shifting their budget in Food 23 784 -5%
favor of other media.
Previous forecasts in brackets from January 2019 Cars 19 698 5%
*VAT is excluded
DENTSU AEGIS NETWORK 85
‘STAGNATION OF TV AND GROWTH OF OLV MARKET IN THE iv. Programmatic
INCOMING YEARS’ Programmatic share in digital ad budget has grown from 5% in 2016 to 9%
in 2019.
BY MEDIA
a. TV v. Paid Search
TV ad spend is estimated to decline in 2019. It has been influenced by a Paid search has the highest share of total digital ad spend (more than
decline in TV viewing, a decline in demand of advertisers and reduced 80%). It continues to grow actively. It is expected that the Paid search
consumer activity. The largest drop is expected in the first quarter of 2019 market will slow down in 2019 but growth will remain high (15-20%).
(~8-9%).
c. OOH
b. Digital
In 2018, the OOH advertising market showed moderate growth of 3%,
Digital is the main driver of the Russian ad market. It showed the highest driven by a development of digital formats. Since 2017, the number of
growth among all media segments in 2018 (+22%). The Digital market has digital billboards doubled in Russian cities. DOOH ad’s share in 2019 could
become the largest media in Russia, surpassing television budgets, mainly reach 30% (of total OOH advertising spend) vs. 18% in 2018.
due to the high share of performance investments. In 2019 the digital
market is estimated to grow by 15-16%.
d. Print
i. Online Video Advertising spend in Print has been declining since 2013. Print advertising
shrunk by 12% in 2018, and it’s expected to decrease further in 2019-2020.
Online video is the fastest growing media segment (~20-25% annually).
This growth is due to the increase of consumption (mainly on mobile), as
well as the development of legal video services, including TV channels and e. Radio
mobile operators. In 2018, the consumption of legal video content increased Unlike traditional radio, which has shown zero growth in ad spend,
by 5 times. digital audio formats have increased threefold in 2018. Among the growth
drivers, experts point towards mobile device penetration and radio listening
ii. Social Media on smartphones. In terms of audience streaming music services, they are
The number of social network users is still growing in Russia. occupying a dominant position as the number of online radio listeners
steadily increases.
iii. Mobile
f. Cinema
Growth of mobile audiences is stimulating the increase of its share in
The share of total ad spend for Cinema is small (~1%). The segment grew
ad spend which is estimated to reach 50% in 2019 (among total digital
by 7% in 2018. It is forecasted to show zero growth in 2019.
spend). The development of technologies (advertising in mobile
applications, the appearance of new game and interactive formats)
also have an effect on market growth.
Total Digital 22.1 15.5 12.3 Total Digital 43.3 47.9 50.9
Total Digital* 22.1 15.5 12.3 Total Digital* 100 100 100
Online Video 27.1 20.4 21.5 Online Video 5.3 5.5 6.0
Social Media n.a n.a n.a Social Media n.a n.a n.a
Paid Search 23.0 17.1 12.9 Paid Search 79.9 81.0 81.4
Programmatic Programmatic
35.4 25.8 23.1 7.5 8.2 9.0
Spend^ Spend^
DENTSU AEGIS NETWORK *Includes Mobile/Tablet and Desktop, ^Subset of Total Digital Spend 87
SLOVAKIA: ‘Both economy and inflation drive media spending but a growth slowdown is
forecast for 2020’
Total Digital 13.1 12.5 14.7 Total Digital 24.8 26.7 29.4
Total Digital* 13.1 12.5 14.7 Total Digital* 100 100 100
Online Video 42.1 33.3 43.3 Online Video 17.5 20.8 26.0
Social Media 20.7 22.7 30.2 Social Media 23.5 25.6 29.1
Paid Search 25.0 12.9 25.0 Paid Search 22.1 22.2 24.2
Programmatic Programmatic
73.3 70.0 9.7 15.0 22.3
Spend^ Spend^
DENTSU AEGIS NETWORK *Includes Mobile/Tablet and Desktop, ^Subset of Total Digital Spend 90
TURKEY: ‘The economic situation remains fragile in Turkey’
2018 2019f 2020f following the sudden devaluation of the Turkish lira in August 2018. The
currency was still losing value in Q1 2019. After a volatile annual GDP Food 545 1%
Turkey -5.0% (-5.0%) 0.0% (0.0%) 3.0% (3.0%) growth in 2016 (+3,2%) and 2017 (+7,4), the Turkey economy grew just
Retail 485 1%
+1.6% in 2018 Q3 and a negative growth was recorded in the last quarter
(-3,1%) of 2018, a negative growth for the first time in 10 years. Annual Communication 407 0%
Previous forecasts in brackets from January 2019
country growth is now at the lowest level since 2008 levels, realized during
Finance 399 -1%
LATEST KEY AD SPEND TRENDS the global financial crisis. 2018 annual consumer inflation was over 20%
and March 2019 levels remain at the same level. The jobless rate was also
• The Turkey market is expected to experience a more moderate mood with Construction & Decoration 394 -1%
recorded as 15%, one of the highest rates recorded in recent decade.
calmed down political stress until the next presidential elections in 2023.
Consumer confidence has also been falling. This started from July 2018 and Personal Care 329 0,5%
• March 2019 local election results are still at the top of the country’s
reached a 2018 year end index of 58%.
agenda as political discussions continue and key macroeconomics have Automotive 270 -1%
not balanced yet. The government has declared a couple of reform
THE 2020 AD SPEND FORECAST Tourism 247 0,5%
packages after the currency shock in August 2018 but the positive instant
effects of declared reforms may not be seen in the short term. 2019 is expected to be a balancing year after a long period with political Drinks 240 0,5%
• The fluctuation of key financial indicators is still taking place and is having elections, difficulties in the economy and stress from geopolitical effects.
The economy is expected to normalize and consumer demand may reach Furniture & Home Textile 201 -0,5%
an effect on the advertising & marketing industry. Unbalanced demand &
supply has resulted in noticeable drops in both Consumer and Producers desired levels. With a positive economic forecast, the ad market outlook is
Price Index. The consumer confidence index has fallen to 2008-2009 for growth of at least 3% by the end of 2019 compared to 2018.
global crisis levels after a long period of stability for a number of years.
AD SPEND PERFORMANCE BY CATEGORY
THE 2019 AD SPEND FORECAST Foods, Retailers, Cosmetics & Personal Care and Home Cleaning categories
Global or local events to boost spend in 2019 were the top players in terms of media investments in 2018. These
The first demoralizing effects of devaluation of the lira have been lost in the categories are also leading in terms of media investments in the first
market, but it is still too early to say a recovery period will begin after the months of 2019. Finance & Banking, Electronics & white goods and Telecom
first quarter of 2019. Recession in the economy is continuing. High sectors had significantly fallen behind the benchmark levels in media
consumer inflation ratio especially sourced from major consumer goods like spending and underperformed in 2018 sectoral rankings. Automobile and
Foods and Transportation is forcing consumers to save money. Record low construction industries are experiencing hard days due to the low demand
sale statistics in key sectors such as Automobile and Construction have led of consumers to the category.
to cuts in Marketing & Media budgets. Finance and Telecom brands are also
hesitant about spending their media budgets or act with more caution.
Handovers in media ownership, closed titles in press, unbalanced demand
to TV along with increased withholding taxes over Social Media are setting
new challenges to all players of advertising & media.
Total Digital 3.5 4.6 4.4 Total Digital 27.5 28.8 29.2
Total Digital* 3.5 4.6 4.4 Total Digital* 100 100 100
Display (Banners) 2.5 2.5 1.6 Display (Banners) 33.2 32.5 31.6
Online Video 9.4 11.4 10.3 Online Video 9.5 10.1 10.7
Social Media 5.6 7.0 6.6 Social Media 15.5 15.8 16.2
Paid Search 2.3 3.9 4.4 Paid Search 41.8 41.6 41.5
Programmatic Programmatic
21.0 19.0 17.0 8.0 9.0 10.0
Spend^ Spend^
DENTSU AEGIS NETWORK *Includes Mobile/Tablet and Desktop, ^Subset of Total Digital Spend 93
North
America
Market
94
CANADA: ‘Even with the downward movement on 2018, the forecast for 2019 remains
strong’
OVERVIEW OF THE TOTAL ADVERTISING MARKET THE 2020 AD SPEND FORECAST
Top 10 Categories 2019f Gross Local 2019f vs. 2018
The forecast for 2020 is $13.5B local currency, with growth driven by the
Year on year % growth at current prices 2019f Currency Million YOY%
continued positive outlook for Television with stronger measurement tools
entering the market, OOH with the growth and availability of digital outlets, Retail 865 -2%
2018 2019f 2020f
and the overall digital landscape. The 2020 Tokyo Olympics are expected to
provide a boost in summer viewing and advertising spend, along with Automotive 640 -8%
Canada 2.7% (3.7%) 5.3% (5.2%) 5.7% (5.1%)
counterprogramming efforts by competitive broadcasters. Finance & Insurance 545 -1%
Total Digital 11.6% 8.6% 8.5% Total Digital 49.1% 50.6% 52.0%
Total Digital* 11.6% 8.6% 8.5% Total Digital* 100% 100% 100%
Online Video 29.0% 23.4% 19.6% Online Video 19.5% 21.2% 22.2%
Social Media n.a n.a n.a Social Media n.a n.a n.a
Paid Search 7.5% 10.1% 12.0% Paid Search 48.7% 47.3% 46.4%
Programmatic Programmatic
18.1% 27.1% 22.6% 41.0% 46.1% 50.4%
Spend^ Spend^
DENTSU AEGIS NETWORK *Includes Mobile/Tablet and Desktop, ^Subset of Total Digital Spend 97
US: ‘US ad spend continues to grow, as advertisers focus on targeting’
OVERVIEW OF THE TOTAL ADVERTISING MARKET
THE 2020 ADSPEND FORECAST Retail
• TV is expected to grow by 1.3% versus 2019. The majority of this will be As consumers habits constantly change, advertisers work to find new ways
Year on year % growth at current prices driven by the Olympics, which brings in around $1 billion, and the to drive in customers. Digital outpaces forecasts as brands continue to rely
presidential election, which mainly effects Local TV in key markets. We will on the strength of mobile commerce. The importance of brand awareness on
2018 2019f 2020f
also see money shift to Advanced TV. Advanced TV being defined as Social Media outlets such as Instagram continues to be a key way to gain
addressable, Programmatic TV, Online Video, audience buying tools as well new customers. TV remains significant, with more retailers looking to create
US 3.4% (3.4%) 3.1% (3.0%) 3.6% (3.6%)
as OTT. meaningful messages to help drive in consumers.
Previous forecasts in brackets from January 2019 • Digital continues to thrive, with an expected growth of +11.2% in 2020.
Advertisers will continue to focus on content marketing and delivering Pharma & Healthcare
LATEST KEY AD SPEND TRENDS quality material to consumers. Advertisers work towards making deeper Pharma & Healthcare are continuing to blossom, growing +5% YOY, with the
• While TV budgets remain stable (+0.3% in 2019), advertisers continue to connections through targeting more precisely their key audience. While bulk of spend still going to traditional TV. Print spend continues to slow with
push for better measurement metrics that deliver increased accountability. general audience content is still important, industry experts believe that a reported decline of almost $100 million. The continued need for brands to
More networks are announcing attribution solutions to directly relate TV data driven advertising will yield improved results. speak directly to consumers grows, as consumers take more control of their
campaign exposure through traditional buys, audience buys, and health. Advertisers are using both Social Media and Digital Video to help
addressable. The reality of ratings erosion is putting pressure on the cost RATIONALE FOR ANY FORECAST CHANGES COMPARED TO THE support and educate patients directly. As companies modernize how they
to buy TV. PREVIOUS REPORT (JANUARY 2019) communicate with consumers, pharmaceutical companies have to make
• Digital continues to grow (+12.5% in 2019), with almost 40% of the total • We do not see many changes to the overall spending from the previous sure to continue to follow the regulations put in place by both the FDA and
US ad spend going to digital. Social Video is driving growth, with live forecasts for 2019 and 2020. Digital Video spend will grow, as well as shift FTC.
Video growing in the Social space, and being leveraged more by Social to audience based buying. OTT will have the highest increase in spend and
Influencers. growth potential, as new players enter the market. CONSUMER TRENDS DRIVING CHANGES IN THE PROFILE OF AD
• Brand Safety continues to be one of the leading forces in the Digital SPEND
Marketplace, which means that recent issues within the digital duopoly are AD SPEND PERFORMANCE BY CATEGORY • As consumers continue to cord-cut and move from linear TV to
putting added pressure on both Facebook and Google to acknowledge and connect/smart TV and OTT viewing (67mins per day), advertisers begin to
Automotive
rectify these issues. With about 300 hours of video uploaded every consider new ad models and formats that are more aligned with the on-
minute, YouTube has continued to push for a sustainable solution to The US Auto Industry remains the largest advertising sector in 2019, and
although the market forecast remains static through 2020, there is a shift in demand viewing experience. This includes utilizing user metrics and
monitor ad supported video. consumer targeting based on what programs they watch as well as
spend. Automakers are under increased financial pressure, and are seeing
budget decreases to help afford the future of automation. There has been a focusing on business outcomes as a metric of success.
THE 2019 ADSPEND FORECAST rise of OTT video ads, which shows that automakers are acknowledging the • As mobile usage rates continue to rise (235mins per day), marketers are
TV budgets remain flat, with no major sporting events (other than the potential that cross-platform spending can have for a brand. expanding targeting strategies and utilizing new technologies, such as
annual events) or major elections in 2019. Due to continued supply geo-marketing, where advertisers are able to serve digital ads to mobile
pressures, the upfront marketplace remains critical for advertisers. users within a predefined geographic area, in the hopes to spark interest
CPG (Packaged Foods, Beverages, Toiletries, etc.)
• Digital Video continues to grow and create different viewing outlets. OTT in that brand and produce higher engagement and brand awareness.
and Addressable allocations continue to see money flow as consumer Spend on CPG products continues to grow for both TV and Digital.
• As Social Media continues to gain in popularity (142mins per day),
viewing habits are changing, and the ability to better use audience, data, Advertisers continue to view linear TV, and more broadly video in general,
advertisers are beginning to recognize that posts are not a one-way
and addressability continue to scale. as a consistent and effective sales driver. CPG companies are experiencing
conversation. Brands are focusing on effective social listening to
significant business disruption from the increasing amount of ecommerce,
• Digital Ad Spending is still delivering double digit growth. This is largely understand what consumers are looking for in both their product and
as more products are going directly to consumers either through
due to the growing amount of Video on Social Media. Twitter is one competitors to help build a more personal relationship with their
intermediaries such as Amazon, that provide the logistics for the brand, or
platform that has benefited from Video Advertising, with ad revenue consumers. There has also been a rise in Direct to Consumer brands that
through brands opening their own online stores.
predicted to be up 11%. are solely advertising and selling products via Instagram.
Total Digital 13.5 12.5 11.2 Total Digital 34.0 37.1 39.8
Total Digital* 13.5 12.5 11.2 Total Digital* 100 100 100
Display Banner 8.0 7.5 6.3 Display Banner 28.3 27.2 26.1
Online Video 25.3 19.4 15.8 Online Video 18.4 19.6 20.5
Social Media 30.2 25.8 26.2 Social Media 5.6 6.3 7.2
Paid Search 11.5 11.1 9.3 Paid Search 39.9 39.6 39.2
Programmatic Programmatic
21.0 17.1 13.6 68.2 71.6 73.6
Spend^ Spend^
DENTSU AEGIS NETWORK *Includes Mobile/Tablet and Desktop, ^Subset of Total Digital Spend 101
Asia Pacific
Market
102
AUSTRALIA: ‘In 2019, Advertisers will be balancing the opportunity that technology
presents with the uncertain outlook of the economy, consumer and business confidence’
OVERVIEW OF THE TOTAL ADVERTISING MARKET THE 2019 AD SPEND FORECAST RATIONALE FOR ANY FORECAST CHANGES COMPARED TO THE
• 2019 is expected to grow by 1.9% to $16,618m, which is a modest PREVIOUS REPORT (JANUARY 2019)
Year on year % growth at current prices increase in overall spend from 2018. Majority of the growth is expected to • We are forecasting an increase of 1.9% and 3.2% for 2019 and 2020
come from Digital and Video channels. respectively. The revised down estimate for 2019 is attributed to a slow
2018a 2019f 2020f start to the year ($947M spent YTD), to which is expected to be further
• 2019 started off slow with a decline in advertising revenue for January and
February based on the Standard Media Index (SMI), tracking (7.6%) on compounded in H1 period given the election period.
Australia 6.6% (3.7%) 1.9% (2.4%) 3.2% (2.6%)
LY. All channels are down YoY, Newspapers and TV the most notable at • SMI data for January and February 2019 saw a drop of 7.6% compared to
(10.9%) and (16.1%) respectively. Market softness a combination of not the same period in 2018. Most notably in February 2019, SMI data
Previous forecasts in brackets from January 2019 only macro conditions but also the lack of major events scheduled vs. revealed Australia's media agency market went through the lowest
2018’s Winter Olympics. percentage decline in ad demand seen since 2009. February 2019 ad
LATEST KEY AD SPEND TRENDS • Both the federal and NSW state election will occur in the first half of 2019 spend slumped by 8.3% compared to the same time last year. TV was a
which is expected to drive ad spend for the government sector. The major contributor to the decline in February spend with a drop of 11.4%
• Our original forecast was for an increase of 2.4% for 2019, however with
government sector had a jump in spend of 9.6% for Jan-Feb 2019 when in contrast with 2018.
such a slow start to the year we've revised this to 1.9%. Based on SMI
figures, the media agency market was down 7.6% for Jan-Feb 2019 compared to last year. While other major sectors like Automotive, • By looking at Nielsen category data for the first couple of months of 2019
compared to last year. All media channels had a decline in spend. These Entertainment & Leisure, and Communications saw decline in spend for (January and February), seven of the top ten categories posted a decline
figures were taken into consideration when the 2019 forecast was revised. the first couple of months of 2019. in spend when compared to the same period last year. The largest decline
However, moving into 2020, with increased digital growth set to continue, • The release of the federal budget had little or no impact on the media and in spend came from categories such as Real Estate (19.7%), Finance
estimates were revised upwards from 2.6% to 3.2%. marketing sector. With the exception of a modest $60 million increase in (14.4%) and Insurance (20.7%) which all posted double digit declining
funding for exporters – a grant scheme which subsidises small and growth.
• While Australia is still a relatively buoyant economic state, the reality for
the majority of Australians is a stagnant outlook for wages for at least medium exporters’ marketing expenditure. • This was then taken into consideration when the 2019 forecast growth
another 18 months, decreasing ‘wealth’ as a homes across Australia lose • The financial sector is expected to pull back on any major campaigns in was revised. The forecast of 2019 will see modest growth and it will
market value and increasing debt as Australians are forced to dip into the first half of 2019 as a result of the Royal Commission. The second half largely be driven by three categories. Government,
their savings. A negative climate for consumer spending has been evident of 2019 will see major campaigns centred around rebuilding consumer Travel/Accommodation, and Retail started the year off strong, all posting
in the market investment across the first two months of this year. trust. growth of 9.6%, 7.4% and 0.8% respectively for Jan-Feb 2019 when
compared to the same time last year.
• Australia had a federal election in May 2019. Both major political parties
faced voter disillusionment. This made for significant election and THE 2020 AD SPEND FORECAST • The total market ad spend for 2019 is looking uncertain with slow growth
government spending. and cuts on various media channels.
• The ad spend market in Australia is expected to grow by 3.2% to
• Innovation across media networks presents a significant opportunity for $17,151m in 2020. • Higher business conditions (an index based on sales, profits and
advertisers. Investment in streaming services on demand and broadcast employment) tend to lead to increased investment in advertising,
• This increase is in part attributed to increasing share of digital and the
video on demand will attract revenue and continue to drive digital growth. however business conditions have fallen to the long-term average, after a
growth forecast for that channel
This will impact the overall growth of the market as digital share continues period of being well above average.
• The Tokyo Summer Olympics will also have a positive impact. The Tokyo
to accelerate. • Due to the slow start in 2019, there is very little momentum pushing for
Olympics will attract major brands due to the compatible time zone with
• MCN launched a new 6 second TV ad format the first time an advertiser further spend especially with very few major events besides the state and
the Australian market. The popular events tend to be shown when most
can run the short-length format within a custom made ad structure for federal elections. Brands might increase spend if the government does go
Australians are watching and with connected devices there are more
linear television. through with a “cash splash” one time payment to Australians.
opportunities for brands to target consumers. Channels that will benefit
from the Olympic games include TV, digital and print. • Print will continue to struggle with major declines in spend. Magazines
will suffer more with double digit decreases in spend expected for both
• The US 2020 election will play a small role – the last US election had an
2019 and 2020.
impact on the Australian trade agreement.
Total Digital 12.4 6.8 7.3 Total Digital 51.4 53.9 56.0
Total Digital* 12.4 6.8 7.3 Total Digital* 100 100 100
Online Video 53.9 28.4 24.4 Online Video 20.0 24.0 27.9
Social Media n/a n/a n/a Social Media n/a n/a n/a
Paid Search 10.4 2.2 2.4 Paid Search 44.0 42.1 40.2
Programmatic Programmatic
n/a n/a n/a n/a n/a n/a
Spend^ Spend^
DENTSU AEGIS NETWORK *Includes Mobile/Tablet and Desktop, ^Subset of Total Digital Spend 106
CHINA: ‘Cautiously confident but not overly optimistic’
OVERVIEW OF THE TOTAL ADVERTISING MARKET Global or local events to boost spend in 2019 The Telecommunication vertical obtained the highest growth rate of 34.3%
• Local economic growth is backed by the second Belt and Road Forum for powered by a 22.0% increase in TV and 68.7% growth in Digital.
Year on year % growth at current prices International Cooperation and the Beijing World Horticultural Exposition Mobile phone and Telecommunications services are the major sub-
2019 in Beijing. The Second China International Import Expo will be held categories driving the growth of Telecommunications.
2018a 2019f 2020f in Shanghai again with a positive impact predicted for business in the city. Beverages achieved the second fastest growth of 20.8% , driven by rise of
• 2019 will see a significant volume of sporting events that will have a of 44.3% in Digital and 70.9% in OOH. Baijiu contributed 102.1% growth in
China 7.7% (7.8%) 5.4% (7.0%) 6.9% (6.4%) positive impact on ad spend, including the: AFC ASIAN CUP 2019, World OOH. In digital channels, Carbonated drinks contributed 82.1% and the
Table Tennis Championship 2019, Women's Football World Cup 2019, FINA highly competitive Tea brands saw a surge of 127.5%.
Previous forecasts in brackets from January 2019 World Championship 2019, BWF World Championship 2019, FIBA World Beauty & Personal Care were in the #3 position with a growth rate of
Cup China 2019, and the FIVB Women's World Cup 2019. These sporting 20.1%, driven by 64.0% growth in Digital and 44.7% growth in OOH. Skin
LATEST KEY AD SPEND TRENDS events will help increase the ad spend in sports related categories like care and Hair care are the major drivers in OOH with separate growth rate
drinks and clothing. of 63.7% and 53.6%. In Digital, Cosmetics, Skin care and Hair care
• For 2018, the total ad spend growth rate was 7.7%, slightly lower than
the previous forecast, largely due to the dramatic drop of TV spending in contributed increases of 107.2%, 62.2% and 51.9%.
the 4th quarter – falling 20.7%. Consequently TV year-on-year growth is THE 2020 AD SPEND FORECAST Due to the government's strict supervision of P2P Enterprises but despite
adjusted to -8.6%. • As the macro economy is expected to recover, the total ad spend of 2020 the popularity of Mobile Payment, Finance & Insurance will decline 5.8% in
• Digital is still the major driver of total growth with a 17.3% increase rate is projected at 6.9% with Digital and OOH as the major drivers. Digital will total. Digital spending in these areas saw a marked decline of 12.8%. Bank
and 60.5% share. increase 12.0% with the biggest share of 66.7%. OOH will contribute a cards, Bank service and Securities separately declined 50.9%, 15.1% and
growth of 8.0% with the third largest share of 9.9%. 47.8% in Digital.
• The decline seen in 2018 Q4 has continued into 2019 Q1, and impacted
our evaluation of overall momentum with a shift from 7.0% (2019 Jan
estimate) to 5.4%. RATIONALE FOR ANY FORECAST CHANGES COMPARED TO THE Top 10 Categories 2019f Gross Local 2019f vs. 2018
PREVIOUS REPORT (JANUARY 2019) 2019f Currency Million YOY%
THE 2019 AD SPEND FORECAST Although China’s economy had a steady start to the first quarter of 2019,
Pharmaceutical & Medicine 213,954 -0.1%
China's GDP increased by 6.4% in the first quarter of 2019 – a surprisingly the advertising industry did not reflect this trend. Key economic indexes
healthy and stable growth rate, which remains on track despite the showed growth across Q1. In comparison with ad spend, TV has continued Beverages 155,565 20.8%
headwinds from the trade tensions with the US. Domestic consumption to fall. The negative growth of TV for 2019 and 2020 has lowered to -6.8%
and -5.6%. After consecutive periods of strong growth, Digital declined in Drink 146,590 4.2%
continues to drive growth with various stimulus measures from Beijing such
as the extended May public holiday. the first quarter and the growth rate for the whole year of 2019 is
Automotives 129,662 18.0%
accordingly lowered from 12.5% to 10.8%. The long term view is more
optimistic. Based on the economic situation in 2020, combined with the Beauty & Personal Care 128,779 20.1%
In 2019, total ad spending will continue to grow but at a lower rate. Digital
expansion of 5G technology and facilities, Digital is expected to increase
and OOH continue to be the drivers of growth, while TV will continue its
slightly by 12% in 2020. Retail 80,978 14.9%
downward trajectory. Though overall ad spend showed a declining trend
(-3.2% for Q1), positive signals in the macro economy were witnessed in Entertainment & Leisure 75,571 18.7%
April 2019 and mainstream industry commentators have made predictions AD SPEND PERFORMANCE BY CATEGORY
that the Chinese economy will stabilise in Q2 or Q3 with more momentum Only 2 out of the top 10 categories will decline in 2019 with growth rates of Telecommunications 75,002 34.3%
towards the end of the year. Overall growth for 2019 is projected to be -0.1% and -5.8%. Pharmaceutical & Medicine is the largest category in the
5.4%. Top 10 categories with year on year stability or perhaps better phrased, Tourism & Transportation 58,458 12.9%
stagnation.
Finance & Insurance 32,665 -5.8%
b. Digital c. OOH
Digital is still the biggest driver for the growth of total ad spend with the iii. Mobile The OOH market will continue to develop steadily with the third biggest
biggest share and highest speed of growth. According to the latest CNNIC report, the Chinese mobile netizen population share of ad spend. Office LCD has maintained a steady growth this year, and
In 2018, China’s Internet advertising revenue reached 369.4 billion yuan grew 8.5% in 2018. The transfer of traffic to mobile is also intensifying, alcohol products have increased significantly.
with a growth rate of 24.2% over the previous year, accounting for about and the proportion of mobile advertising revenue has increased by 7.5%
4.2% of GDP, about 0.6% higher than last year. (Extracted from the “China to 67.5% compared with last year. With the popularity of 5G, this trend d. Print
Internet Advertising Development Report 2018” issued by Zhongguancun will continue.
Magazines are still declining, but the pace has slowed. Newspapers are flat.
Interactive Marketing Laboratory in January of 2019.) But as Digital’s
growth in the first quarter of 2019 declined slightly, the annual growth of Feed advertising has become an important driver for the rapid growth of
e. Radio
Digital in 2019 is lowered to 10.8%. mobile advertising as users continue to seek a more natural experience and
advertisers seek to connect in less invasive push formats. Radio’s upward trend will continue as car ownership continues to increase
year on year. But mobile audio apps are moving in which will cause a decline
Influenced by the rise of new media giants, the market shares of BAT are in the usage time of traditional radio.
gradually being eroded. In 2018, BAT accounted for 69% of China's Internet iv. Programmatic
advertising revenue, 2% lower than 2017. In line with rising consumer Programmatic ads see a high growth rate. New technology and methods are
spending power, media usage also grew rapidly in the lower tier and rural applied to optimize the performance of programmatic. This trend of
markets. Toutiao, Meituan and Pinduoduo are the leading players who have performance-based advertising started in 2017 when artificial intelligence
been quick to grow platforms and channels to cater for the media habits and technology was used to help companies continuously optimize bidding rules
consumption behavior of these markets. With greater choice and changing and processes for accurate delivery and anti-fraud. Advertisers have
consumer behavior, the marketing budget of local advertisers in tier 3 and gradually moved from CPC or CPM to truly targeted and effective delivery.
tier 4 cities has also substantially shifted to digital media.
Cinema NA NA NA Cinema NA NA NA
Total Digital 17.3 10.8 12.0 Total Digital 60.5 63.6 66.7
Total Digital* 17.3 10.8 12.0 Total Digital* 100 100 100
Online Video 31.1 21.6 21.1 Online Video 12.3 13.5 14.6
Social Media 25.6 15.7 17.3 Social Media 9.1 9.5 10.0
Paid Search 9.5 3.4 4.0 Paid Search 22.4 20.9 19.4
Programmatic Programmatic
38.2 31.8 28.6 20.1 23.9 27.5
Spend^ Spend^
DENTSU AEGIS NETWORK *Includes Mobile/Tablet and Desktop, ^Subset of Total Digital Spend 109
HONG KONG: ‘Conservative growth forecast in 2020’
BY MEDIA
a.
Total digital ad spend is forecasted to grow at 17.8% in 2019, an upward revision from
16.3% since the previous update. It is the only medium with high positive growth and
a 51.3% share of spend. It is expected to have similar momentum moving into 2020.
Key growth drivers are Online Video, Mobile, Social and Programmatic.
Online Video ad spend is forecasted to have the highest growth at 31.6% in 2019,
mainly attributed by the growth of mobile video. Both Youtube and Facebook remain
as the core online video drivers recording a rapid increase across desktop and mobile,
where Viu has a high growth in mobile video too.
b.
A negative growth of TV is predicted at 3.5% in 2019. TVB Jade remains as the
dominant channel with estimate TV spending share of 60% while the ad spend in Cable
TV is forecasted to decline by 20% to 25%. Pharmaceuticals and Banking remain as
the major TV spenders with reported YTD growth of -14% and 5% respectively,
followed by Toiletries & Household (-21%) and Travel & Tourism (+2%).
c.
Total OOH spend is forecasted to drop by 16% in 2019. MTR remains as the core OOH
channel estimated to account for 45% spend. Key categories reported YTD spending
drop of 20% and 23% for Pharmaceuticals and Banking & Finance respectively.
d.
The spend in Newspapers is forecasted to continue to decline across categories at 26%
in 2019, a slight downward revision from -25%. Pharmaceuticals and Travel & Tourism
will continue to overtake Banking & Finance as the key spending categories.
e.
The continuous decline in Magazine ad spend is observed across categories. Its ad
spend growth is forecasted to decline by 40% in 2019. Ad spend share in 2015 was
10.6%, we expect it will decrease to 1.7% in 2019 and 0.9% by 2020.
Cinema NA NA NA Cinema NA NA NA
Total Digital 25% 17.8% 15.5% Total Digital 43.5% 51.3% 59.0%
Total Digital* 25% 17.8% 15.5% Total Digital* 100% 100% 100%
Online Video 77.4% 31.6% 25% Online Video 36.3% 40.5% 43.5%
Programmatic Programmatic
NA NA NA NA NA NA
Spend^ Spend^
DENTSU AEGIS NETWORK *Includes Mobile/Tablet and Desktop, ^Subset of Total Digital Spend 112
INDIA: ‘Cautious spends in the 1st quarter’
Surging fuel prices have also impacted the GDP growth in India.
The results of the election will decide the year’s economic progress.
RATIONALE FOR ANY FORECAST CHANGES COMPARED TO THE Ad Spend Performance By Category
PREVIOUS REPORT (JANUARY 2019) 2019f Gross Local
CONSUMER TRENDS DRIVING CHANGES IN THE PROFILE OF Top 8 Categories 2019f YOY%
Currency Million
The regulation of TRAI hit the TV industry quite hard and there were black AD SPEND
outs in some markets for a brief period. Advertisers started limiting their Indian’s are some of the biggest multitaskers in the world today – 90% of FMCG 195,580 9%
spend and they were so cautious that they even started sending the media consumption occurs in front of a screen. As consumers balance their
releases weekly. time between smartphones, tablets, PCs and televisions, they are learning Auto 66,710 5%
This caused a behavioural change in the way subscribers choose packages, to use these devices together to achieve their goals. They talk while driving, E-Commerce 65,826 12%
which impacted not only viewership but also measurement data, making it respond to emails while eating dinner with family, track cricket scores in a
highly volatile. Things will take time to stabilize and numbers will have to be strategic discussion, catch a few minutes of their favorite Netflix show on
Consumer Durables 48,510 11%
watched closely every quarter. This will also impact 2020 slightly. the go. The language of communication today is Emoji's, GIF’s, audio
messages & videos, and written word is losing its importance.
BFSI 47,244 9%
The economic context This multi-screen behavior is quickly becoming the norm, and understanding
it has become imperative for businesses. Hence screen agnostic planning for Telecom 44,250 5%
The economy appeared to grow at a steady although slightly slower pace in
agencies has become critical.
January–March, with survey data for the private-sector pointing to strong
Media & Entertainment 41,132 24%
growth throughout the period. This comes after economic growth slowed in
October–December. Brands can increase their reach to this new consuming class by talking in
Retail 35,452 8%
their language on their mediums, creating huge opportunities. Brands need
to be more than products, they need to create experiences with products & Others 152,214 18%
Recently, the main political parties released their general election
services, experiences that create a social value more than just simple
manifestos. The incumbent Bhartiya Janata Party (BJP) announced it would
consumption. Brands need to understand the role of each medium of
continue investing heavily in infrastructure and supporting farmers. Aside
communication and design their message accordingly. One message fits all
from putting more emphasis on social welfare spending than on
is no longer relevant – it needs to fit the role the person is playing in a
infrastructure expenditure, the economic policy of the opposition Indian
specific environment.
National Congress does not drastically differ from the BJP. Meanwhile, the
World Bank warned on the 4th April that public finances could become more
fragile because the revenue from the goods and services tax has been below There is a marked consumer shift towards health and wellness-driven
expectations, and political parties are making large spending promises. choices, such as products and services that are perceived to be relatively
Economic momentum is expected to remain steady this fiscal year, which healthy and less harmful, or that enhance people’s sense of physical and
started in April. Robust government spending should support growth, as mental wellness and the environment. Due to a tie-up & merger in the
should looser monetary policy and greater political certainty following the ecommerce industry, ad spends are declining. After Jio launched, a large
elections. However, weak public finances and global trade protectionism number of subscribers moved over from Airtel & Vodafone idea.
both weigh on prospects. Our panelists expect GDP growth of 7.2% in FY
2019, which is down 0.1 percentage points from last month’s estimate, and
7.3% in FY 2020.
Total Digital 32.4 32.7 32.7 Total Digital 17.4 20.7 24.5
Total Digital* 32.4 32.7 32.7 Total Digital* 100 100 100
Display (Banners) 32.4 33.8 37.9 Display (Banners) 20.9 21.1 21.9
Online Video 41.6 43.5 37.2 Online Video 20.8 22.5 23.3
Social Media 34.1 34.6 34.3 Social Media 28.5 28.9 29.3
Paid Search 25.9 24.3 23.2 Paid Search 24.7 23.1 21.4
Programmatic Programmatic
67.5 78.9 32.9 18.4 24.8 24.8
Spend^ Spend^
OVERVIEW OF THE TOTAL ADVERTISING MARKET THE 2020 ADSPEND FORECAST 2019f Gross Local 2019f vs. 2018
Top 10 Categories 2019f
• Ad spend in 2020 is forecasted to grow by 3.5% higher than in 2019 Currency Million YOY%
Year on year % growth at current prices
(2.2%). The fundamental economy is getting stronger with annual growth
Food & Beverages 48,695,897 15.9%
of between 5.3% to 5.6%. This is more optimistic than what international
2018 2019f 2020f
institutions such as the IMF and World Bank had predicted that growth Personal Care 28,690,365 10.6%
would be, about 5.2% p.a.
Indonesia 1.8% (2.2%) 2.2% (3.7%) 3.5% (4.7%) Corporate & Public Services 12,801,255 -13.3%
• Emerging E-commerce and payment gateways are expected to drive 2020
adex growth, potentially compensating for the dip of adex in the ‘FMCG’ Pharmaceuticals 14,129,582 12.6%
Previous forecasts in brackets from January 2019
category and ‘Corporate & Public Services.’ We are also expecting the E-commerce/Online Service 12,218,898 21.8%
LATEST KEY AD SPEND TRENDS Tokyo Olympic 2020 to give a spill-over effect to boost adex in particular
from its officials sponsors and event broadcasts. Cigarette 6,710,847 12.3%
• TV and Digital are the main media with the most allocated ad spend. They
are forecast to grow by 2% and 16% respectively in 2019. Home Care 6,384,835 6.9%
• Print ad revenue continues to suffer due to the continuing decline in AD SPEND PERFORMANCE BY CATEGORY Automotive 5,143,746 7.6%
readership. Other media (e.g. Radio, OOH and Cinema) has seen a The ‘Food & Beverages’ category keeps the top position in 2019 it is
growth in the region of 3-5%, similar to GDP growth 5.1%. Telecoms 4,665,542 10.7%
forecasted to grow positively by 16% to reach 48.7 Trillion IDR. ‘Personal
• The emergence of e-commerce and payment gateways (e.g. OVO, Dana, Care’ is the second contributor growing by 11% to 29 Trillion IDR. After the Media & Entertainment 3,934,160 2.6%
Go-Pay) can potentially have a positive effect on ad spend and could elected president & legislative members are appointed in Sep 2019, the ad
potentially cover the dip in the FMCG category. spending of ‘Corporate & Public Services’ remains highly, but with declining
• The emergence of OTT platforms (e.g. HOOQ, Viu, Oona, indihome) growth by -13% to 13 Trillion IDR. Pharmaceuticals and E-commerce/Online
funded by traditional TV stations is expected to impact Service are contributing positively by 13% and 22% respectively.
media consumption.
Cigarette is predicted to increase by 12% to 6.7 Trillion IDR, followed by
THE 2019 ADSPEND FORECAST Home Care which is going up to 7% to 6.4 Trillion IDR. Automotive and
We had expected the election to increase ad spend but this did not happen Telecoms are promoting positively to ad spending growth by 8% and 11%.
as the information broadcast commission of Indonesia limited the airtime Big broadcasters are continuing to provide more investment into Media &
and ad-space for political parties considerably. The election outcome may Entertainment, in particular for over-the-top (OTT) emerging platforms to
affect the forecast for H2/2019. keep attracting viewers who consumed more digital and multi-platform.
DENTSU AEGIS NETWORK Note: Based on Nielsen Adquest Ad Spending up to 2017 - Mar 2019 for TV and Print 119
‘SMALL-MEDIUM ENTERPRISES SHOWING SIGNS OF BEING MORE b. Newspapers Video-on-demand or over-the-top (OTT) shows a positive growth trend,
ATTRACTED TO UTILIZING DIGITAL/SOCIAL MEDIA & LOCAL TV Readership and ad spend share for Newspaper shows a continuously with massive investments by streaming services and giant broadcasters.
THAN LOCAL PRINT’ declining trend to 26% and 21% respectively, due to the influence of digital Improving digital infrastructure across the country is driving increasing
newspapers as well. KOMPAS Group & JAWA POS Group still take a lead in reach and demand. Currently, there are three dominant local players in the
BY MEDIA. total share of ad spend. Top spending comes from Government/Political OTT landscape in the country, namely HOOQ, iFlix, and VIU as well as the
parties followed by Corporate campaigns, Real Estate & Apartment and top player Netflix.
a. Television Hotel & Restaurants
Total Digital 16.0 16.0 18.0 Total Digital 20.7 23.5 26.8
Total Digital* 16.0 16.0 18.0 Total Digital* 100 100 100
Online Video n.a n.a n.a Online Video n.a n.a n.a
Social Media n.a n.a n.a Social Media n.a n.a n.a
Paid Search n.a n.a n.a Paid Search n.a n.a n.a
Programmatic Programmatic
n.a n.a n.a n.a n.a n.a
Spend^ Spend^
DENTSU AEGIS NETWORK *Includes Mobile/Tablet and Desktop, ^Subset of Total Digital Spend 121
JAPAN: ‘Digital growth continues’
OVERVIEW OF THE TOTAL ADVERTISING MARKET RATIONALE FOR ANY FORECAST CHANGES COMPARED TO THE Expenditure by Industry *Four traditional media only
PREVIOUS REPORT (JANUARY 2019)
Year on year % growth at current prices 2019 forecasts have been revised upwards following a re-examination of 2019f Gross Local 2019f vs. 2018
Top 10 Categories 2019f
estimates based on the addition of digital advertising carried by traditional Currency Million YOY%
2018a 2019f 2020f
media companies for "2018 Advertising Expenditures in Japan", one of the Information / communications 282,800 99.2%
bases used for estimation.
Japan 2.2% (0.2%) 1.2% (0.6%) 1.8% (2.4%)
Cosmetics / Toiletries 262,600 99.9%
• With the Tokyo 2020 Olympic and Paralympic Games set to take place in markets are expected to grow by 22.7% and 39.3% respectively, in 2019.
2020, Japan's advertising market is likely to see big growth. However,
forecasts call for a reactionary drop after the Games, partially due to a Smartphone penetration is on the rise across all age categories.
lack of major events thereafter. Household smartphone ownership in Japan is 75.1%, surpassing the
country's household PC ownership of 72.5% (Source: Ministry of Internal
THE 2019 AD SPEND FORECAST Affairs and Communications, White Paper on Information and
Communications in Japan). The plethora of models available that are easy
• Steady growth of 1.2% is expected to continue for the advertising market
for the elderly to use are prompting this demographic, which has long been
throughout 2019. Among the major events that will impact the advertising
comfortable using conventional cell phones, to switch to smartphones.
market are the announcement and start of Japan's new era name in April
Preschoolers are also beginning to use smartphones on a daily basis as a
and May, respectively; the G20 Summit in Osaka in June; Tokyo 2020 test
result of increasing smartphone penetration among their parents' generation.
events beginning in July; the Rugby World Cup 2019 in September; and
Using readily accessible digital devices such as these, consumers are
the consumption tax increase to 10% in October.
interacting with a vast array of information and entertainment.
Places such as airports will continue to see high ad demand, with tailwinds
from an increasing number of foreign tourists and the Tokyo 2020 Olympic
and Paralympic Games, among other things.
d. Print
In newspapers, while there are reasons for concern, such as the continuing
fall in readership numbers, growth surpassing last year's is expected due to
events related to the New Era, the Rugby World Cup 2019, unified local
elections and House of Counselors elections, the consumption tax hike, and
being one year away from the Tokyo 2020 Olympic and Paralympic Games,
among other events.
Cinema - - - Cinema - - -
Total Digital 16.5 14.5 12.1 Total Digital 26.9 30.5 33.6
Total Digital* 16.5 14.5 12.1 Total Digital* 26.9 30.5 33.6
Programmatic Programmatic
20.0 - - 80.3 - -
Spend^ Spend^
DENTSU AEGIS NETWORK *Includes Mobile/Tablet and Desktop, ^Subset of Total Digital Spend 125
MALAYSIA: ‘The projection looks stable for 2020’
BY MEDIA.
c) There has been a significant increase in Voice Search over the last 12
months, driven by the development of more voice enabled devices,
smarter AI and better speech recognition software. There are no signs of
this trend slowing down and by 2020 50% of Searches will be generated
by Voice.
f) Radio, Cinema, OOH and Digital are gaining more shares year-on-year
from TV and Newspaper. However, their growth is slowing down with
Digital growth projected to slow down in 2020 to +10%.
Total Digital 16.1 10.2 10.0 Total Digital 28.6 32.7 34.6
Total Digital* 16.1 10.2 10.0 Total Digital* 100 100 100
Online Video 19.6 11.9 12.8 Online Video 14.0 14.2 14.6
Social Media 24.2 14.6 13.6 Social Media 50.4 52.4 54.1
Paid Search 7.3 6.3 4.8 Paid Search 13.7 13.2 12.6
Programmatic Programmatic
21.6 13.4 10.0 68.1 70.0 70.0
Spend^ Spend^
DENTSU AEGIS NETWORK *Includes Mobile/Tablet and Desktop, ^Subset of Total Digital Spend 128
NEW ZEALAND: A soft start to 2019 for agency spend. Direct Search and Display digital
growth will offset traditional and agency spend declines
OVERVIEW OF THE TOTAL ADVERTISING MARKET 2019 is forecast to grow at +2.3% in 2019, slightly below the current GDP Top 10 Categories 2019f Gross Local 2019f vs. 2018
Growth of 3%; this difference can be explained by strong performance from 2019f Currency Million YOY%
Year on year % growth at current prices companies exporting overseas rather than a buoyant domestic economy. Retail 429.7 +2.3%
The continuing digitisation of OOH and Direct Digital Search, Display and
2018a 2019f 2020f Automotive 330.3 +2.3%
Social are the main drivers for this growth, offsetting subdued agency and
traditional media spend. Leisure, Entertainment 328.1 +2.3%
New Zealand 3.5% (2.0%) 2.3% (3.1%) 3.3% (4.1%)
Foodstuffs 320.6 +2.3%
Previous forecasts in brackets from January 2019
THE 2020 ADSPEND FORECAST
Government Departments,
• Ad spend is forecast to sit at +3.3% for 2020 driven by continued Direct Services & Community
217.9 +2.3%
LATEST KEY AD SPEND TRENDS Digital Search and Display and OOH growth.
Investment, Finance,
• 2018 forecasts have been revised upwards as a result of much stronger 185.3 +2.3%
• Digital OOH opens up new opportunities for audience buying and ways to Banking
than expected Search advertising spend. This grew 22% year on year incorporate into programmatic buying, while Programmatic Video, Google Travel 184.1 +2.3%
during 2018. and FB/Instagram will continue to grow and take share as media time
Pharmaceuticals, Health 169.3 +2.3%
• In contrast, traditional media expenditure across the market has softened spent increasingly becomes digital.
in recent months, particularly agency-controlled spend. Print media is expected to continue its declines of >15% YOY, while Radio & Telecommunication 165.0 +2.3%
• TV slipped into decline during 2018 (-3%). This is predicted to continue TV are predicted to see continued minor spend declines, -1 to -2%. Home Improvements 144.1 +2.3%
into 2019 (-1%) and beyond as audiences continue to fall.
• The only traditional media business in growth is OOH (5%), driven AD SPEND PERFORMANCE BY CATEGORY
primarily by additional digital placements. Categories that drove investment across 2018 were Telecommunications
• Digital Display (+5%) and Social (+18.4%) continues to make up for the (+$44m, driven by TV & OOH) and Automotive (+$29m, driven by Radio,
shortfall in traditional media spend, particularly Google and Facebook OOH & TV).
outside agencies. This was reflected in the latest IAB figures for Q4 2018.
• As a result of the continuing pace of digitisation of traditional media and Key categories offsetting this are Toiletries/Cosmetics (-$12m, with declines
audience shifts online, clients need to focus on how to build brands in the driven by TV, OOH, & Magazines), Household Electrical Products (-$10m
digital economy to be successful. with declines driven by Newspapers & Radio), and Agricultural (-$5m with
declines driven by TV & Newspapers).
THE 2019 ADSPEND FORECAST
The media agency market has started slowly during 2019, with Jan-Feb Note: Category figures are all based on AQX data, which is measured in
agency spend down -5% YOY, driven by Newspapers, Digital and TV (all ratecard value and excludes most Digital spending.
sitting down between -6% and -8% YOY).
Note: As ASA figures for 2018 market expenditure are yet to be release,
DENTSU AEGIS NETWORK all 2018 figures remain estimates based on SMI/Nielsen AQX ratecard data
129
‘OOH CHANNEL SHARE INCREASING’ d.
TV On-Demand platforms continue to grow audience, with TVNZ OnDemand
BY MEDIA achieving 16.8m streams (+121% YOY) across 631k unique users (+39%
YOY) in Mar 2019. Connected TVs (CTVs) are now driving over 40% of
a. streams, with the networks investigating methods of monetising this
segment of their audience. One new product offered on TVNZ includes a
OOH media has experienced strong growth in the past few years (+19% in
display ad that fills the CTV screen when pausing a stream.
2017 and +24% in 2016). 2018 revenue is forecast to be 5%, with positive
growth forecast to continue for a number of years. Media suppliers are
investing heavily in Digital sites, allowing for rotation of ads which is e.
multiplying the revenue they can derive from their inventory and also in With Print investment continuing to decline rapidly (Newspapers -15% and
new audience measurement systems which allow for a robustness to the Magazines -15%) and growth in publisher online revenue failing to cover all
medium that previously did not exist in the New Zealand market. this lost revenue, new sources of income are being investigated. One
Digital OOH screens are presenting new and interesting opportunities for strategy recently implemented by NZME has been to introduce a partial
clients to work with the medium and channel share is increasing as a result. subscription service to the NZHerald’s online platform.
b.
TV spend is projected to decline in 2019 (-1.0%), with investment being
pulled towards advertising in the Rugby World Cup, the broadcast for which
is to be split with the coverage predominantly on Spark Sports, a new
Digital OTT offering in the market, with the remainder on TVNZ. The
successful broadcast/reception of the Rugby World Cup on Spark Sports
would send a ripple effect across the market, demonstrating to the market
their ability to securely deliver sports coverage on a large scale.
c.
Online ad spend continues to grow significantly faster than the overall
market, with growth for 2017 and 2018 estimated at 18%. It is expected to
continue to grow rapidly over the next few years (consistently in excess of
10% p.a.). Amazon does not operate in New Zealand and so Google and
Facebook are projected to further dominate the Digital landscape, currently
estimated to hold 60%-70% of Digital spend share and projected to
contribute 80%-90% of Digital growth.
Total Digital 18.2 10.6 11.0 Total Digital 46.5 50.3 54.1
Total Digital* 18.2 10.6 11.0 Total Digital* 100.0 100.0 100.0
Online Video 15.0 15.0 15.0 Online Video 3.2 3.4 3.5
Social Media 11.8 18.4 13.3 Social Media 15.3 16.4 16.7
Paid Search 22.3 6.1 8.6 Paid Search 53.1 51.0 49.8
Programmatic Programmatic
Spend^
22.7 18.6 27.9 Spend^
22.1 23.6 27.1
DENTSU AEGIS NETWORK *Includes Mobile/Tablet and Desktop, ^Subset of Total Digital Spend 131
PHILIPPINES: ‘Election boosting ad spend in 2019’
OVERVIEW OF THE TOTAL ADVERTISING MARKET
Year on year % growth at current prices Southeast Asian Games Nov 30-Dec 11, 2019 2019f Gross
2019f vs. 2018
The Philippines will be hosting the SEA Games in 2019. SEA Games related Top 10 Categories 2019f Local Currency
YOY%
2018 2019f 2020f ads are expected – TV, OOH & Digital. Million
• Overall, industry spending is on a decreasing trend as expected except for • OOH: Estimated ad spend forecast for 2020 is PHP 26.9billion. Factors will
Alcoholic Beverages 8,172.32 22%
the first quarter when growth can be attributed to the influx of Political, be: (a) Continuous addition to the current roster of LED screens (b)
Government ads. Addition of in-train inventories (LRT/MRT). Overhead screens are now Telecoms 7,579.40 12%
audio enabled and advertisements can be tracked real-time (d) Government 6,863.58 48%
• Government ads are generally present on TV and Radio so were not able
Expansion of programmatic media buying through technology and data.
to arrest the continuously declining Print spend.
• Digital: Est. +10% increase in 2020 compared to 2019. Automotive 6,138.60 10%
• During January - February 2019, the top 3 advertisers (Unilever, Nestle
and P&G) increased spend vs. the same period last year. They account for Media & Entertainment 6,031.84 8%
almost 30% of total industry spend. AD SPEND PERFORMANCE BY CATEGORY
Retail 3,879.83 6%
• ATL: Top 3 categories in Jan-Feb 2019 continue to be: Personal & HH
THE 2019 AD SPEND FORECAST Care, Food & Beverages and Pharmaceuticals. This is forecasted to be
the trend for FY2019, similar to previous years.
• Focusing on TV, Radio, Print - the first two months (Jan-Feb 2019) saw an
average increase of +13% vs. the same period last year. • OOH: The following categories remain as the top spenders/active
players in OOH - QSR (Jollibee, McDonald’s), Alcoholic Beverages
(San Miguel), FMCG.
2019 National Elections
• ATL: Jan-Feb 2019, the Government category had an increase of 130%
vs. previous year, this is likely due to the 2019 National Elections. This
trend is likely to continue until the last day that election related ads are
allowed to air – May 11, 2019.
• OOH: There have been quite a lot of candidates who advertised through
OOH in the form of large format billboards, banner ads, LED and rear
bus ads.
• Digital: Q1 has started to be cluttered on digital. With National Elections
expected to have an impact on inventory and audience supply for
platforms that allow bidding such as Facebook and Google, brands have
been allowed to reserve buys and ensure audiences are reached.
BY MEDIA.
a.
TV still has the highest share of spend, but growth is expected to be modest.
b.
Print is expected to continue to decrease in 2019 (approximately 27% on
average) while online readership is stable.
c.
Radio is likely to remain strong, with current numbers (January-February 2019)
showing an increase of about 27% vs. the same period in 2018.
d.
OOH - It is expected that players will continue to find ways of standing
out – aside from special build productions, they can explore dynamic or
real-time messaging, geo-location targeting, integration of Mobile with OOH.
Digital OOH inventories will continue to expand. We will be seeing more
data-led OOH campaigns.
e.
Digital – Google and Facebook will continue to take the lion’s share of spend.
However we are seeing increasing spends on platforms that generate big data
for smarter audience targeting for use with programmatic buying/other
technology. eCommerce will grow exponentially due to a surge in online
shoppers and the demand for products and services online.
Almost 80% of Filipino urban dwellers are online and more than 90% of them
have purchased products online over the past 6 months. E-commerce is on the
increase. Lazada and Shopee are the leading purchase platforms for: FMCG,
Beauty products, Shoes and Apparel, Bags and accessories. Facebook comes in
as the third most popular platform (75% of online Filipinos use Facebook).
Total Digital 25.0% 10.0% 10.0% Total Digital 3.3% 3.3% 3.7%
Y-O-Y % GROWTH AT
MEDIA % SHARE OF TOTAL DIGITAL
CURRENT PRICES MEDIA
SPEND
2018a 2019f 2020f 2018a 2019f 2020f
Total Digital* 25.0% 10.0% 10.0% Total Digital* 100% 100% 100%
Online Video 24.7% 10.0% 0.0% Online Video 39.2% 39.2% 36.9%
Social Media 24.9% 10.0% 10.0% Social Media 24.9% 10% 10%
Paid Search 25.5% 10.0% 10.0% Paid Search 16.4% 16.4% 17.0%
Programmatic Programmatic
25.0% 10.0% 10.0% 90.0% 90.0% 90.0%
Spend^ Spend^
DENTSU AEGIS NETWORK *Includes Mobile/Tablet and Desktop, ^Subset of Total Digital Spend 134
SINGAPORE: The continued upward growth trajectory of Digital has displaced TV for the first
time in history
OVERVIEW OF THE TOTAL ADVERTISING MARKET THE 2020 ADSPEND FORECAST Vitamins/Health prep/health food and tonics: While Singaporeans are
• The ad spends in Singapore are expected to decline by 5.6% to $1.83 becoming more health conscious and spent $49 million on vitamins and
Year on year % growth at current prices health supplements in 2018, spends are predicted to decrease by 8%,
billion in 2020, although this does not take into account the potential of
the next General Election (timing TBD in 2019 or 2020) which may provide with the overall economic slowdown. The category will see key advertisers
2018 2019f 2020f
a buffer. continuing to dominate in 2019.
-8.5% (- -7.5% (- -5.6% (- • The projected decline is expected to be led by traditional media, with Banking/Finance: Singapore bank loans shrank to 2.9% in Q1 2019 which
Singapore
8.5%) 7.5%) 5.6%) may lead to a reduction in ad spends. The banking/finance sector is
Newspapers (26%) bearing the brunt of it, followed by OOH (15%) and
Radio (12%). forecasted to decrease by 13% to $44m.
Previous forecasts in brackets from January 2019
• Despite the overall decline, Digital continues to grow and share of spend General range of car/motoring co.: The General range of car/motor
LATEST KEY AD SPEND TRENDS is projected at 39% in 2020. company sector is forecast to decrease by 6% to $50mil. This sector is
• Singapore’s economic growth in Q1 2019 came in lower at +1.2 per cent. largely dependent of prices of COE which in turn are determined by supply
This is lower than the +1.3 per cent vs. the previous quarter. Due to and demand which affects the overall price of car.
AD SPEND PERFORMANCE BY CATEGORY
continuing global trade tensions which have resulted in sliding business
Government Services (Statutory board, government campaign):
and consumer confidence - investments and consumption are taking a
The Government services category is forecasted to decrease by 4% to 2019f Gross Local 2019f vs. 2018
downward trajectory. Top 10 Categories 2019f
$144m in 2019. HPB and Gov.sg will continue to be the biggest advertisers. Currency Million YOY%
• As such, a subdued ad spend outlook is expected to carry on into 2020.
Corporation: The Corporation sector is projected to maintain at $139m in Govt svcs (stat board,
All traditional media channels have been seeing a decline in spends, 144 -4%
2019. Daikin Aircon, Mitsubishi Electric, MCS and Samsung are likely to govt campaign)
with only digital spends projected to grow 9% YOY through to 2020.
continue investing. Corporations 139 0%
Mobile share of spend is expected to reach a dominating 80% of digital
spends in 2020. Media: The Media sector is predicted to decrease by 6% to $127m in 2019.
Media 127 -6%
SPH and MCS will continue to be the biggest advertisers in this sector.
• As a nation, we are well placed to leverage Asia’s growth and the rise of
Other portals/internet community/network: The other portals/internet Other portals/internet
digital transformation and innovative services. With the advancement of 125 -2%
community/network
technologies, we will also see innovation across media networks which will community/network sector is forecasted to decrease by 2% to $125m.
Toggle is the biggest spender in 2018 and it is likely to continue in 2019. Events/concerts/
continue to drive digital media growth. 82 1%
performances/theatre
Events/Concerts/Performances/Theatre:
Travel agencies/
The events/concerts/performances/theatre sector is expected to increase 54 -10%
THE 2019 AD SPEND FORECAST tourist commissions
slightly by 1% to $82m. If the trend of major performances getting sold out
Global or local events to boost spend in 2019 Super/hyper/mini
within the hours of release, event organizers do not have to spend much on 53 -5%
market/food stores
• Singapore turned 200 years old this year, however, the bicentennial advertising as the performers/events sell themselves.
celebratory mood did not translate to spikes in ad spends with brands Vitamins/health prep/
Travel agencies/Tourist commissions: The travel agencies / tourism 49 -8%
health food/tonics
being cautious.
commissions sector is forecasted to decline by 10%. Even though outbound
• 2019 will continue to see a decline in spend by 7.5% to $1.935 billion Banking/finance 44 -13%
departure of Singapore residents saw a YoY growth of 5% in 2018, the
• Traditional media continues to be on a downward spiral since 2017. sector is facing stiff competition from OTAs. General range of
38 -28%
YoY, Newspapers and OOH are the most notable at (26%) and Super/hyper/mini market/food stores: Spends for this sector is car/motoring co.
(15%) respectively. expected to decline by 5%. Newspapers is the lead medium of choice for
• However, Digital media spends with its continued upward trajectory is this sector and NTUC is the biggest spender.
expected displace that of TV’s in 2019 for the 1st time in history.
c. OOH
Out of home is also expected to experience double digit decline as well.
Spend is forecast to be $160m. While digital OOH formats, which allows
customisation by time, audience and weather, are getting popular and can
now be found across Singapore, advertisers are limited by inventory which
is currently limiting its potential. It will take time for publishers to scale it to
a level whereby it is easily accessible island wide.
d. Radio
Even though it is forecast to see a double digit reduction, YoY share of
spend still hovers around 7%. Formats and cost for this medium have not
seen a evolution.
Cinema NA NA NA Cinema NA NA NA
Total Digital 13.2 9.2 9.4 Total Digital 28.4 33.5 38.8
Total Digital* 13.2 9.2 9.4 Total Digital* 28.4 33.5 38.8
Online Video 23.1 10.0 12.0 Online Video 12.4 12.5 12.8
Paid Search 13.2 10.0 10.0 Paid Search 33.8 34.1 34.2
Programmatic Programmatic
21.4 11.6 14.3 44.0 45.0 47.0
Spend^ Spend^
DENTSU AEGIS NETWORK *Includes Mobile/Tablet and Desktop, ^Subset of Total Digital Spend 137
SOUTH KOREA: ‘The 2020 Olympics to positively affect the local market’
OVERVIEW OF THE TOTAL ADVERTISING MARKET THE 2020 ADSPEND FORECAST 2019f Gross
2019f vs. 2018
In 2020 the Korea ad market is expecting to increase by 5.7% based on Top 10 Categories 2019f Local Currency
Year on year % growth at current prices YOY%
the Cheil communication report. According to Cheil’s announcement, since Billion
Korea is geographically close to Japan, the 2020 TOKYO Olympics will have Finance /Insurance 1,327 5%
2018 2019f 2020f
a halo effect on the Korea ad market. In addition, Terr. TV will recover from
Computer &
the current depression which is caused by the strike at the end of 2017. Telecommunication / Game 1,116 20%
South Korea 5.2% (2.5%) 5.7% (2.4%) 4.9% (2.3%)
Finally, 5G telecommunication will be used at full scale. 5G will leverage (Mobile)
digital media spend growth.
Previous forecasts in brackets from January 2019 Household electronics 768 20%
However most ad market specialists believe that the 5.7% ad market
LATEST KEY AD SPEND TRENDS growth is exaggerated. Food 735 10%
Market projections for 2018 had been around +2.5% however according to Beverage /favourite food 608 12%
Cheil Communication’s ad market report, the market increase was much AD SPEND PERFORMANCE BY CATEGORY
Service 606 -8%
bigger than previously forecast. The most significant difference came from Finance & Insurance: Traditional Finance and Insurance advertising has
Digital ad spending. DAN Korea had expected a 7.5% increase in Digital been decreasing. However new mobile Banking services such as Kakao Automobile /Transportation 550 12%
spend however Cheil reported a 14% increase. As the Korea market does Bank have launched and the mobilization of bank services drives the
not have an official measurement system to evaluate Digital spending, increase in this category. Most of the banks have launched Mobile Household goods 545 -5%
there is a high possibility that Digital spend may vary depending on how it applications. In addition mobile direct payment such as Samsung Pay, Medicine / Medical 520 1%
is measured. Naver pay and Kakao Pay are competing in the Finance category.
Government & Association 507 -2%
3 Key Messages: Computer & Telecommunications and Mobile games (Application):
1. TV especially Terr. TV ratings decrease is getting sharper. TV has lost In this category, the main increase comes from the launch of 5G
it’s No.1 SOV position to Digital media. telecommunication and Mobile games/applications. 5G technology
2. A remarkable global Digital media increase is being seen. is igniting advertising. Mobile game and applications are investing
Digital media is demonstrating sharp growth, led by Google and huge budgets.
Facebook (Instagram).
3. Within Digital, Mobile share of spend is showing a significant increase Household Electronics: New house electronics such as clothes dryers
and it will only get higher as the 5G telecommunication begins in 2019. and stylers (cloth maintenance electronics) have become must have items.
The most distinguished transformation is diversifying online video Due to the issue of fine dust, air purifiers which are able to filter out fine
planforms. SK telecommunication merged with local OTT platform Pooq dust have become must have electrical items. These new electrical items
and formed a dominant local OTT platform. These diversified online have caused a remarkable increase in ad spend in this category.
platforms will give clients an opportunity to create more specific
campaign objectives.
Beverage and Automobile: These two categories have had an increase in
ad spend due to imported products. Within beverages, 6 to 8 new imported
THE 2019 ADSPEND FORECAST beers have been launched whilst other beverage ad spending has been
In 2019, there will be no specific local or global sports events or elections. maintained at previous years’ levels. In the Automobile category, imported
However the 2020 Tokyo Olympics may affect the local advertising market. automobiles have increased their spend and launched new models. The
Several Olympic sponsors may operate pre-Olympic campaigns towards the highest spend increase was witnessed for BENZ, Volvo, Audi and Hyundai
end of 2019. with new models launched recently.
a. Terr. TV d.
Overall TV share of ad spend is decreasing. The decrease is occurring on Within Digital media local and portal media such as NAVER, DAUM and NATE
Terr. TV. Even though Terr. TV is focused on creating high quality are struggling but global media such as YouTube and Facebook (Instagram)
programmes, it will be hard for Terr. TV viewership to recover. In 2019, the have recorded high growth in 2018. Main media share of voice in digital are
main battle field of the TV market is procuring killer content. To improve NAVER(25.1%), YouTube(13.7%), DAUM(11.7%), Facebook &
the current momentum, Cable TV (CJ ENM) and Comp.TV (JTBC) have been Instagram(11.3%) and NATE(3.6%). The most notable phenomena occurred
more aggressively investing in content production. Terr. TV has also been in Search. YouTube Search has had exponential growth. YouTube Search
competing in the content production arena. growth has rejuvenated Search growth. Due to YouTube, Search spend will
OTT platforms pose a risk to traditional TV ratings. Netflix has been increase and total Search spend will increase in the future.
successfully settled since 2018. In addition to Netflix, SK telecommunication
has merged with local OTT “Pooq” to become the biggest OTT platform.
b.
Print media (Newspaper and Magazine) continue to decline and are trying to
expand into Digital media. Newspaper publishers have started to enhance
their online platforms focusing on building authenticity. Magazines have
already achieved partial success on their digital platforms. Although several
magazines have discontinued, publishers have kept alive their digital
versions. Total Magazine spending is expected to keep decreasing but
Magazine digital spending will increase.
c.
Digital media overtook TV spend and became the largest media type in
Korea in 2017. In 2018 the gap between TV and Digital becomes wider.
Digital’s growth momentum is forecast to be maintained and is expected to
grow by +11.3% in 2019 to reach over 40% of total ad spend. Mobile shows
the biggest growth +19.6% and accounts for 26.9% of the total market.
The main cause of Mobile ad growth comes from a 95% Smartphone
distribution rate. The growth of content consumption on the mobile device
has been remarkable and Mobile leads total advertising market growth.
Total Digital 14.4 11.3 11.0 Total Digital 39.5 41.6 44.0
Total Digital* 14.4 11.3 11.0 Total Digital* 100.0 100.0 100.0
Online Video 105.0 6.3 19.8 Online Video 19.8 18.9 20.4
Social Media 76.0 0.2 4.8 Social Media 15.0 13.5 12.8
Paid Search 30.8 28.0 18.2 Paid Search 40.0 46.0 49.0
Programmatic Programmatic
43.0 67.0 25.8 10.0 15.0 17.0
Spend^ Spend^
DENTSU AEGIS NETWORK *Includes Mobile/Tablet and Desktop, ^Subset of Total Digital Spend 140
TAIWAN: Market Growth in Advertising Comes from
Digital Ads
OVERVIEW OF THE TOTAL ADVERTISING MARKET 2019 ad market growth momentum is expected to come from
the following:
Year on year % growth at current prices 1. Taiwan will hold the presidential election in early 2020, which will
influence ad spend by government agencies and candidates beginning
2018 2019f 2020f in mid-2019. Social Media is expected to benefit the most, followed by
TV and OOH.
Taiwan 2.7% (1.0%) 1.0% (1.5%) 1.2% (1.3%) 2. In November 2019, Taiwan will host the WBSC Premier 12. As the
Taiwan team strives for 2020 Olympics qualification, a baseball craze is
Previous forecasts in brackets from January 2019 anticipated in Taiwan. In the past, the ad market has seen significant
growth as long as Taiwan’s baseball team is winning. Ad spend on Social
LATEST KEY AD SPEND TRENDS Media, MOD and OTT platforms as well as TV is to benefit from the event.
• The number of OTT users began to grow significantly in late 2018. 3. The beginning of third-party payment in late 2018 led to NTD$70 million
According to Nielsen, the number of people using OTT on their Mobile in ad spend. With the support of the government and the establishment
phones grew by +12.6% in 2018. Smartphones have become the major of consumer behavior, Mobile payment competition will become
device for accessing Video platforms. As a result, mobile ads have gained increasingly fierce in 2019 and 2020. Companies are expected to invest
importance and are a must for advertisers. big-budgets into advertising in order to get major mobile payment
market share. TV, Social Media and store-based OOH are predicted to be
• In November 2019, Taiwan will host the World Baseball Softball
the main media to be spent on. Based on Taiwan market scale, only
Confederation (WBSC) Premier 12. As long as the Taiwan team are
three to five third-party payment companies are expected to remain in
winning, Taiwan ad spend will see significant growth. Investment on Social
two years as all others will have gone out of business.
Media, MOD, OTT platforms as well as TV is expected to increase due to
the popularity of this event.
• Starting from July 2019, Chrome will no longer permit full-page ads and
other disruptive ad formats. Meanwhile, Apple’s action on implementing
ITP 2.1 (Intelligent Tracking Prevention 2.1) on Safari, as well as GDPR’s
limitation on tracking, both are expected to have a huge impact on the
digital ads market.
Total Digital 12.0 10.0 8.0 Total Digital 39.1 42.6 45.5
Total Digital* 12.0 10.0 8.0 Total Digital* 100 100 100
Online Video 18.2 15.8 13.4 Online Video 19.0 20.0 21.0
Social Media 16.5 12.1 10.0 Social Media 26.0 26.5 27.0
Paid Search 12.8 10.4 7.6 Paid Search 28.0 28.1 28.0
Programmatic Programmatic
29.9 29.1 24.2 20.3 23.8 27.3
Spend^ Spend^
DENTSU AEGIS NETWORK *Includes Mobile/Tablet and Desktop, ^Subset of Total Digital Spend 144
THAILAND: ‘Slow investment in general’
Total Digital 15.5% 37.0% 19.6% Total Digital 13.3% 17.8% 20.3%
Total Digital* 15.5% 37.0% 19.6% Total Digital* 100% 100% 100%
Online Video 22.9% 33.6% 22.8% Online Video 24.3% 23.7% 24.4%
Social Media 14.8% 32.8% 18.2% Social Media 46.4% 45.0% 44.5%
Paid Search 13.4% 71.4% 20.0% Paid Search 8.2% 10.2% 10.3%
Programmatic Programmatic
28.4% 73.6% 29.0% 30.0% 38.0% 41.0%
Spend^ Spend^
DENTSU AEGIS NETWORK *Includes Mobile/Tablet and Desktop, ^Subset of Total Digital Spend 147
VIETNAM: ‘Ad spend forecast to accelerate to 7% in 2019’
Year on year % growth at current prices Top 10 Categories 2019f Gross Local
2019f vs. 2018 YOY%
2019f Currency Million
• From a client’s perspective, to keep the same performance as 2018, IT & Office Technology 791,389 722%
they should increase spending by around 5%.
Furniture & Decoration 735,419 68%
c. Multi-Media Campaigns
There is a gap between how well marketers think they integrate strategies
and what consumers see and we need lots of brand integration cues to
improve campaign performance. There might be an answer which fit could
be better across all channels where consistent use of characters or
personalities differentiates the best campaign.
Total Digital 15.0 12.2 11.0 Total Digital 11.3 11.9 12.6
Total Digital* 15.0 12.2 11.0 Total Digital* 100 100 100
Online Video 15.0 15.0 15.0 Online Video 14.8 15.2 15.7
Social Media 15.0 15.0 15.0 Social Media 29.6 30.4 31.5
Paid Search 15.2 10.0 11.0 Paid Search 8.1 8.0 8.0
Programmatic Programmatic
n.a 39.1 26.7 16.0 20.2 23.0
Spend^ Spend^
151
ARGENTINA: ‘Advertising investment in 2019 will grow below inflation’
OVERVIEW OF THE TOTAL ADVERTISING MARKET It is expected that the Mercosur agreement with the European Union will
Top 10 Categories 2019f Gross Local 2019f vs. 2018
bring economic improvements (mainly with exports). The government 2019f Currency Million YOY%
must show economic improvements in view of the presidential elections in
Year on year % growth at current prices
October. The 2019 budget was approved with the government's proposal to Retail 22,392 30%
reduce the primary deficit to reach 0% of GDP, a private consumption drop
2018 2019f 2020f Beauty 20,938 25%
of 1.6%, and inflation of 25% (although today it is forecast at 30%).
Pharmaceutical 14,601 37%
Argentina 16.6% (26.0%) 21.6% (25.0%) 18.7% (19.4%)
THE 2020 AD SPEND FORECAST Food 10,077 20%
Previous forecasts in brackets from January 2019 Everything will depend on the results of the elections in October 2019. Political 8,401 40%
If the ruling party shows and maintains the projected economic policies,
Telecommunications 8,023 38%
LATEST KEY AD SPEND TRENDS it is possible that there will be economic recovery and that this will mainly
• The crisis of the 2nd half of 2018 abruptly cut advertiser’s budgets - the reactivate communication in the sectors of mass consumption. If a new Banks & Finances 6,781 23%
AR $ was devalued by 49% and inflation closed at 50%. The 16% growth government arrives with the populist profile of the previous government,
is due to inflation. there will be a lot of uncertainty regarding the political and economic Espectaculos 5,953 14%
decisions that they will make. This may cause the advertising market to
• Growth was expected by the big advertisers who have dollar budgets, but Cleanning 5,808 22%
remain hesitant without communicating too much, during the first year of
this did not happen.
the new government. Drinks Without Alcohol 4,451 18%
• Volumes decreased but investment increased due to the media raising
their prices, and because demand is still high.
AD SPEND PERFORMANCE BY CATEGORY
Of the Top Ten categories, Political shows the most growth as expected, and
THE 2019 AD SPEND FORECAST
the rest all grow below inflation. The other category that shows high growth
It’s expected that advertising investment in 2019 will grow below inflation,
is Telecommunications, and this is due to Telecom's alliance with Cablevisión
and there will be uncertainty about the changes that may be generated in
which pushed the whole category to communicate. The Pharmaceutical
the political context of the country. Political communication will have a
Industry continues to grow although at a slower pace than in 2018. Retail
big presence.
and Beauty have regained their growth, although always below inflation.
Banks and Finance have maintained their advertising communication and
2019 will be a political year, with presidential elections in October. The are trying to offer fixed terms with high rates.
communication from political parties grows, and the inventories of
audiovisual media are saturated with communication. This is free however
as spaces are provided by the government for political parties.
Total Digital 30.0% 35.0% 30.0% Total Digital 25.1% 27.8% 30.5%
Total Digital* 30.0% 35.0% 30.0% Total Digital* 25.1% 27.8% 30.5%
Online Video 44.0% 56.3% 52.6% Online Video 19.9% 23.0% 27.0%
Social Media 23.1% 50.9% 38.7% Social Media 13.4% 15.0% 16.0%
Paid Search 24.7% 42.2% 33.8% Paid Search 32.3% 34.0% 35.0%
Programmatic Programmatic
127.5% 65.9% 51.2% 35.0% 43.0% 50.0%
Spend^ Spend^
DENTSU AEGIS NETWORK *Includes Mobile/Tablet and Desktop, ^Subset of Total Digital Spend 154
BRAZIL: ‘Economic and social uncertainty still remain due to the political issues of the
new government.’
OVERVIEW OF THE TOTAL ADVERTISING MARKET RATIONALE FOR ANY FORECAST CHANGES COMPARED TO THE Top 10 Categories 2019f Gross Local 2019f vs. 2018
PREVIOUS REPORT (JANUARY 2019) 2019f Currency Million YOY%
Year on year % growth at current prices
Economic and social uncertainty still remain due to the political issues of the
Retail 24.245 13,97%
new government.
2018a 2019f 2020f
Consumer Service 18.769 23,25%
Brazil 7.1% (7.1%) 8.8% (3.6%) 4.5% (6.2%) It is possible that an increase of investment in the digital ads market will Finance 10.698 6,00%
occur, since technological developments such as automation and artificial
Personal Care 10.145 4,21%
Previous forecasts in brackets from January 2019
intelligence are among the top trends of 2019.
Pharmaceutical 9.405 8,66%
LATEST KEY AD SPEND TRENDS
Video ad formats are also increasing in 2019-20, due to growth in the OTT
• The financial market remains optimistic with economic growth. Brazil’s Leisure, Sports,
(over-the-top) market. 7.684 5,27%
Culture and Tourism
GDP is expected to grow by 2.57% this year.
• President Bolsonaro decided to review the welfare and tax reform Media 6.708 11,24%
AD SPEND PERFORMANCE BY CATEGORY
legislation in this new government. This is expected to boost the economy
Once elections are over, investment in Public Administration tends to fall, as Public Administration 5.228 -12,96%
and attract new investors to the country.
well as Telecommunication. Considering the optimism of the market due to
• To leverage tourism, a visa waiver for U.S, Canada, Japan, and Australia Telecommunication 5.096 -5,02%
economic growth, there is an expectation that Retail and Consumer Services
was announced, starting on June 17th. Internet searches for flights to
will start investing more to attract consumers.
Brazil have grown by 36% after the official statement. Beverages 4.810 3,09%
Many people are trying to spend less and with more caution. This consumer
THE 2020 AD SPEND FORECAST
profile is increasing due to the economic crisis in the country, in which
• Economic and political sectors may be affected positively or negatively by people are having trouble with their paychecks and will be insecure about
the 2020 elections of mayors and city councillors. their jobs for the next few years. It may affect the Retail and Leisure
• The Olympic Games will be one of the main sports events that has a sectors as well.
global impact. When the event is held in Japan, advertising schedules
may be changed to coordinate with Oriental time and to make ads
more profitable.
The announcement of the arrival of CNN News Brazil promises to fiddle with iv. Programmatic
the setting of Pay TV in Brazil. Currently this market is dominated by Globo Programmatic is increasingly guided by data, which will enable this market e. Radio
News (a channel that belongs to the Globo Group). The beginning of the to keep increasing along with the growth of databases. Programmatic tends When we analyze the data for radio in Brazil, we notice a continued
broadcast is planned for the end of the year. This movement will promote to be chosen more and more now as data about consumers and their retraction in media investments. For 2019, it is believed that the segment
the advertising market and promises to increase the investment in TV preferences becomes richer everyday. There is a also a continuous will grow only 2% compared to last year.
by 9%. investment in new technologies and ways to improve user experience to
increase retention. f. Cinema
b. Digital Considering that some medias are bought in dollars, it is expected that Due to the increased coverage of information from our advertising
The digital market is the most promising area for many Brazilians, as it has foreign and multinational companies will start investing more in Brazil this investment data source (Kantar Ibope - Monitor Evolution), there has been
space for everyone. It is an extremely dynamic and creative sector and, for year once the Real currency is devalued, favouring buys per dollar. a significant growth in cinema data. Comparing the data for 2018, we
any business model, trade mark or design, it is paramount to have a digital predict that the segment will grow 38% in 2019.
strategy. The investment in digital should grow 12% until 2021. The figures v. Paid Search
show that the digital segment represents 1/3 of the total invested in Paid Search is increasing along with the other sectors. Because it is digital,
publicity in the country. there is the opportunity for several companies to offer more affordable
prices with a higher range. The continuous improvement in search
i. Online Video algorithms will boost the industry both this year and next. This media is also
There are two strong trends for online videos in 2019. The first is the viewer influenced by the dollar exchange rate, as well as programmatically. As the
no longer taking a passive role and instead interacting and getting involved Real is low in 2019, the industry will attract more investment from foreign
with the video they are watching. The second trend is a focus on user companies.
experience, ensuring that the viewer is immersed in high-quality content.
An example of content that is growing currently is augmented reality. c. OOH
The media Out Of Home (OOH) in Brazil has reached a level that shows a
ii. Social Media recognition of both its strength and relevance. Last year, the market grew
The focus of social networking in 2019 will be on stories and companies 8.6% and occupied third place in terms of advertising investment after TV
looking to stay relevant on social networks need to improve their Stories and digital, according to CENP media. The growth prospect for this year is
performance across all social media platforms: Instagram, Facebook, optimistic, and it is believed that the segment will grow 14% by the end
WhatsApp and Snapchat. Another trend for 2019 is getting the spotlight on of 2019.
yours ads on social media. It is important for campaigns to be relevant and
generate engagement. There is a reduction of soft banners on the feed and
an increase in "full campaigns", designed to boost engagement and
discussion, such as on Spotify and Netflix.
Total Digital 21.1% 4.2% 4.0% Total Digital 10.7% 10.3% 10.2%
Total Digital* 21.1% 4.2% 4.0% Total Digital* 100% 100% 100%
Online Video n.a n.a n.a Online Video n.a n.a n.a
Social Media n.a n.a n.a Social Media n.a n.a n.a
Paid Search -9.3% -16.6% -11.6% Paid Search 40.2% 32.1% 27.3%
Programmatic Programmatic
n.a n.a n.a n.a n.a n.a
Spend^ Spend^
DENTSU AEGIS NETWORK *Includes Mobile/Tablet and Desktop, ^Subset of Total Digital Spend 157
COLOMBIA: ‘The expected recovery for 2019 will be postponed until 2020’
• Associations of traditional media, in their internal reports and estimates Education 204976 4.2%
AD SPEND PERFORMANCE BY CATEGORY
(which have now become confidential), reported a steady decrease in their
income some years ago, a situation that continues to occur in the first Trade remains the dominant sector, despite the estimated reduction in Industry And Construction 184660 15.9%
• On the other hand, it is also clear that the local market does not have
measurements for new possible destinations of the investment e.g. Automotive is showing a notable recovery compared to 2018.
content, better measurement of digital, etc.
BY MEDIA
a.
It is very remarkable that in 2018 the share of mobile over desktop in
digital investment is consolidated: mobile already makes 61% of the
investment in digital (IAB).
b.
Online Video and Social Media were consolidated in 2018 as the most
important formats: together they already make up more than 50% of the
investment in Digital.
Online Video still dominates Social Media, but this situation will revert in
2020.
c.
The reduction in TV share reflects current audience dynamics, for example,
the reduction of the Open TV rating or the stagnation of the Pay TV rating,
in relation to 2010 or 2011. Even the penetration of Pay TV has started to
recede: it went from 88% in 2017 to 84% in 2019.
d.
There’s a similar situation in print media: press and magazines.
e.
Despite its low share, OOH should show some recovery.
Total Digital 41.4 37.3 39.4 Total Digital 13,3 18,4 25,5
Total Digital* 41.4 37.3 39.4 Total Digital* 100.0 100.0 100.0
Online Video 44.8 40.6 42.6 Online Video 27.7 28.4 29.0
Social Media 59.3 52.7 53.4 Social Media 25.7 28.6 31.5
Paid Search 58.8 52.3 53.1 Paid Search 19.1 21.2 23.2
Programmatic Programmatic
73.7 62.7 61.1 17.4 20.7 23.9
Spend^ Spend^
DENTSU AEGIS NETWORK *Includes Mobile/Tablet and Desktop, ^Subset of Total Digital Spend 160
MEXICO: ‘Retail ad spend keeps going up’
OVERVIEW OF THE TOTAL ADVERTISING MARKET In addition, as the Mexican economy heavily depends on doing business It’s curious that Restaurants’ ad spend has risen so much, but the rise in
with the United States, president Donald Trump has used this to establish retail could have contributed to this. Malls have been opening all over the
Year on year % growth at current prices policies like taxes on Mexican goods. These are orientated to force the country at a pace that you couldn’t have imagined years ago.
Mexican government to take responsibility for returning thousands of
2018 2019f 2020f
migrants trying to reach the United States, to their homeland mainly in A large portion of the population’s consumption has migrated to
Central America, when they still are on Mexican soil.
Mexico 9.1% (7.9%) 6.0% (6.6%) 4.5% (5.0%) non-traditional channels like telemarketing. This platform has been more
People feel less confident to spend or invest in expensive goods likely to push an actual consumer to increase their buying.
like properties, because there is less security in their financial and
Previous forecasts in brackets from January 2019
employment contexts.
LATEST KEY AD SPEND TRENDS Top 10 Categories 2019f Gross Local 2019f vs. 2018
2019f Currency Million YOY%
• Government investment has decreased making almost all media channels THE 2020 AD SPEND FORECAST
less saturated than in 2018 when there was high activity with political • 2020 follows the decreasing trend from the 2018 political campaigns. The Retail $21,403 +1.3%
campaigns. light growth that’s expected for 2020 is influenced by the same distrust in
• This creates an opportunity for advertisers to take advantage over their Mexico’s economic environment. Internet $11,405 -26.9%
competitors, occupying these new slots before others. • The Mexican population’s low consumption due to the new government Telemarketing $15,435 +33.4%
• Also considering that media channels will be less saturated, they can work prices, product availability, public services etc., could influence the
with more efficient communication strategies in a cross media scope to negative trend in ad spend in the next few years. Shampoo $10,114 -4.3%
deliver more functional messages, with an audience that will feel they’re
receiving less advertising than last year. Departmental stores $9,664 -25.1%
AD SPEND PERFORMANCE BY CATEGORY
Retail ad spend keeps going up. This is caused by small or local retailers not Anti-flu/Analgesics $9,272 +12.7%
THE 2019 AD SPEND FORECAST being able to keep up with big retailers. Sodas $7,901 -5.4%
Currently, Mexico’s audience is awaiting 2 soccer tournaments that will be
ongoing simultaneously in June: America’s Cup and the Gold Cup. Internet services are also decreasing compared to 2018, where they had an Beers $7,224 -20.1%
Digital channels will keep rising up because of the number of basic service important season in which they made these services available to a portion CD music/video $5,365 -12.9%
providers that have been migrating their client services onto apps, and of the population that didn’t have access, and where they added new
because low costs or promotions on internet services has made it easier to Restaurants $7,056 +12.7%
services for families who already had access at home.
have contact with these kind of digital solutions.
It’s important to emphasize that last year there was a rise in respiratory
The economic context diseases, and therefore the category Anti-flu/Analgesics showed growth.
This year, Mexicans are mostly worried about the economic policies that the In the center of the country, the air pollution has been worse than previous
national government are standing for, like the policy over the national years, and therefore during the first half of 2019 this topic has been on
petroleum company and cutting public aid and budget for public services people’s minds, especially those living in the center of the country but also
that the majority of people need in their day to day life: health services, in other regions.
childcare, etc.
Televisa maintains their cost per rating point. They will perform an analysis j. VR & IA (CHAT BOT / Machine learning)
for each client about the category behavior, target and audience, with the d. OOH Business Intelligence claim that 8% of internet users that use smart
objective of offering an adhoc plan to each client with traditional spots, The new government of Mexico will continue the initiative to regulate this speakers have used voice to shop. The second iteration of Snapchat’s
product placement and digital. media in an effort to decrease visual saturation that affects the image of Spectacles are projected to include AR functionality.
the city. Digital OOH continues to grow. This format will take a big step in
Tv Azteca will have a new scheme for 2019. They will offer an audience the future to evolve in a new way with the ability to buy OOH k. DOOH
guarantee under the model called CPM (Cost per Thousand) with two programmatically and using geolocation.
DOOH: Nowadays only Clear Channel have the technology to sell
models of purchase (free and horizontal). The horizontal model will allow programmatic audience on OOH. The benefit of using DOOH is that it
having spots in their 4 channels at the same time. e. RADIO allows changes “in real time” to ads.
This media continues with the same business scheme - by cost per spot.
Imagen TV maintains the CPR as the essential way of commercialization. l. BRAND CONTENT
In addition, Open TV is evolving into the platforms digital and Pay Tv. The f. CINEMA • Content continues to grow from 8% to 13% vs. 2018.
consumption of Open TV has been modified, because of the growth in Coverage continues to expand based on an increased number of movie • Based on data generation, the personalization of content will lead
Digital screens. theaters - the accelerated growth of construction, specifically of shopping strategies.
malls, has increased the number of complexes and has made movies more • 80% lead by video content.
In 2019, Broadcaster Dish launched a new channel on Open TV with their accessible to greater numbers of people.
• Fast content will become the new ads.
own programming and with a multitarget audience.
• Message apps have become a new channel for distributing content this
Izzi has grown in coverage from 4.3 million to 4.4 million households. g. DISPLAY year.
Paid TV is increasing their Digital platform and they are maximizing their There has not been a change of formats. On display what is being • VOD is the principal ambition for clients.
content using the strength of influencers. exploited the most is content, and there is a tendency of the budget
• From a client perspective, the ROI is much more efficient.
moving to programmatic.
Notes:
b. PRINT-NEWSPAPERS
There is uncertainty surrounding the new government that begun in
This medium is mainly affected by digital. Advertisers are migrating to h. AUDIO SYNC
December 2018. We need to be alert to any factors that could impact
digital platforms and so newspaper publishers are starting to add digital Audio Sync: Digital Sync is increasing in the Mexico market and this year media consumption.
components to reach digital audiences too. we can connect our radio campaigns using audio sync.
Total Digital 24.6 17.0 12.0 Total Digital 35.4 39.1 41.9
Total Digital* 24.6 17.0 12.0 Total Digital* 100.0 100.0 100.0
Online Video 33.0 35.0 37.0 Online Video 28.7 31.7 36.2
Social Media 37.0 28.7 24.7 Social Media 25.0 26.4 27.4
Paid Search 20.2 18.1 12.4 Paid Search 28.9 27.9 26.2
Programmatic Programmatic
n.a. n.a. n.a. n.a. n.a. n.a.
Spend^ Spend^
DENTSU AEGIS NETWORK *Includes Mobile/Tablet and Desktop, ^Subset of Total Digital Spend 163
Middle East
& North
Africa
Market
164
MENA: ‘Economic growth will gain steam’
Economic growth in the MENA region is forecast to improve modestly, Banking & Finance 457 5.6
reaching an average of 2.6% in 2019-2020. Oil exporters will significantly Property & Building & Acc. 395 1.9
benefit from higher oil prices and external oil demand that will likely remain
high, as well as domestic reforms. Oil importers are expected to benefit
from reforms, rising trade with Europe and China, and financial inflows from
MENA oil exporters.
Total Digital n.a. n.a. n.a. Total Digital n.a. n.a. n.a.
DENTSU AEGIS NETWORK *Includes Mobile/Tablet and Desktop, ^Subset of Total Digital Spend 167
EGYPT: ‘The market is witnessing TV Market Monopolization
Another football year is deriving campaign opportunities’
OVERVIEW OF THE TOTAL ADVERTISING MARKET THE 2020 AD SPEND FORECAST
2019 (Q1) Gross 2019(Q1)vs. 2018
The forecast for 2020 is still unpredictable given that the economy is still Top 10 Categories
Local Currency (Q1)
Year on year % growth at current prices 2019(Q1)
stabilizing. However there are indications that there will be an increase/rise Million YOY%
in foreign investments, funds etc - there has been a noticeable increase
2018a 2019f 2020f Telecom 1,856m Egp 361%
behind Tourism which is a huge variable for the Egyptian economy.
19.7% Therefore, when brands especially the multinationals start witnessing the Public Sector 1,389m Egp -
Egypt -4.9% (9.0%) 3.1% (17.8%)
(19.8%) stabilization in the country and in specific the customs costs decreasing
Real Estate 1,196m Egp 1%
(behind the USD stabilization) for the importation of products. This will
Previous forecasts in brackets from January 2019
increase brands’ confidence in marketing their products in Egypt. Another Ghee 546m Egp 2748%
LATEST KEY AD SPEND TRENDS point is that by mid year the media market research should be operating
Pharmaceutical
again since it has been terminated since May-17, which will allow brands to 655m Egp 17740%
• Monopolization of the TV market where key TV network concessions have Products
be able to measure their campaigns and KPIs on TV as before, thus
merged as one entity under silent government supervision, creating Diapers 604m Egp 63%
prompting brands to further increase their investments and advertise on
agency limitation and power on negotiations and allowing key suppliers to
Television with more confidence in planning deliveries. Medical Servicing 677m Egp 107%
monopolize the market and inflate ratecards.
• Direct CPM buys continue to diminish with clients moving towards Washing Detergent 654m Egp 41%
performance-based platforms and sponsorships/takeovers. AD SPEND PERFORMANCE BY CATEGORY
• Telecommunications, Public Sector and Real Estate are the top Lighting 416m Egp -
3 category spenders throughout 2019 (YTD). Toothpaste 377m Egp 74%
THE 2019 AD SPEND FORECAST
Global or local events to boost spend in 2019 • Pharmaceutical, Ghee and Telecom are witnessing significant spend
growth throughout 2019 YTD, other categories also showing spend
The market has been active in early 2019 yet the increase in investment
increase are Diapers, Toothpaste and Washing Detergent.
has been moderate. However, it is definitely expected to improve drastically
in Q2 given the upcoming Africa Cup of Nations (CAF) tournament during • Other categories have witnessed stability in spending such as Public
June-July as the majority of clients have shifted spend to adapt their Sector and Lighting.
communication to be driven behind the CAF communications and are
currently preparing for their key campaign launches to support
the tournament.
BY MEDIA
a.
TV spend continues to increase YOY given the importance of this medium in
Egypt, however there is a noticeable shift from TV to Digital
communications.
b.
Investment in local Display platforms has decreased significantly whilst
investment in performance-based platforms have increased.
c.
Facebook and Instagram continue to be the largest Social platforms in Egypt
in terms of penetration and therefore continue to be key platforms for
advertisers.
d.
Due to the drop in investments on local Display platforms, suppliers are
integrating more content and Social media benefits within their sponsorship
packages and offerings.
e.
Due to the efficiency of Programmatic buying, suppliers are recreating the
same programmatic buying offering across all of their combined platforms.
Total Digital 12.9% -48.8% n.a. Total Digital 24.7% 13.3% n.a.
Total Digital* 12.9% -48.8% n.a. Total Digital* 100% 100% 100%
Online Video n.a. n.a. n.a. Online Video n.a. n.a. n.a.
Social Media n.a. n.a. n.a. Social Media n.a. n.a. n.a.
Paid Search n.a. n.a. n.a. Paid Search n.a. n.a. n.a.
Programmatic Programmatic
n.a. n.a. n.a. n.a. n.a. n.a.
Spend^ Spend^
DENTSU AEGIS NETWORK *Includes Mobile/Tablet and Desktop, ^Subset of Total Digital Spend 170
LEBANON: ‘Situation remains volatile’
BY MEDIA.
• Social Media spends are increasing over time, clients are shifting their
strategies to ‘Always On’ paid Social by promoting posts on pages to
increasing continuous engagement.
• Radio has witnessed positive growth of 90% from 2005 to date, although
there is a slight declining trend in listenership.
Total Digital n.a. n.a. n.a. Total Digital n.a. n.a. n.a.
DENTSU AEGIS NETWORK *Includes Mobile/Tablet and Desktop, ^Subset of Total Digital Spend 173
Rest of
World
174
SOUTH AFRICA: ‘Diversifying offering and consumer touchpoints are key to winning in the
battle for attention in the South African Economy’
OVERVIEW OF THE TOTAL ADVERTISING MARKET Moreover, streaming has positively impacted TV, video and music. Potential changes to social media polices on advertising and data mining
Increasingly TV and internet advertising are becoming interlinked. However, (i.e. privacy) and changes in legislation around alcohol advertising may
Year on year % growth at current prices newspapers and magazines will continue to see a decline into 2022. There impact spend in this area, however, spend share is still relatively low (but
has also been an increase in the number of smaller specialist consulting growing slowly) in South Africa and will not significantly effect advertising
2018 2019f 2020f
agencies. The improving economy and more positive outlook will see the spend as a whole.
market stabilizing, however, media agencies must ensure that they are able
South Africa 2.9%(-3.8%) 8.4% (6.6%) 8.3% (6.6%)
to offer a full service, fully integrated and ROI based media solutions. AD SPEND PERFORMANCE BY CATEGORY
Previous forecasts in brackets from January 2019 Advertising regulations have caused a significant decline in the ad spend of
Global or local events to boost spend in 2019 Tobacco & related categories. In April 2018 there was an increase in VAT
LATEST KEY AD SPEND TRENDS The South African advertising market is only impacted by very major from 14% to 15%. This had a significant impact on consumers. Both Retail
• Rapid digitization is seeing the growing convergence of the entertainment sporting events (i.e. mostly Soccer World Cup and local elections, and to and FMCG brands will have to reassure consumers, as this is where it is
and media industry. As a result, the battle for the consumer’s attention is a lesser degree Rugby & Cricket events). Interest and advertising around most felt. A positive economic outlook should encourage both sales and
becoming increasingly evident across various sectors. Furthermore, this is events such as the Rugby World Cup also tends to be limited to specific competition for larger priced items such as motor vehicles.
leading to a plethora of media platforms that are creating digital audiences (i.e. young men) although one can see a general increase in
extensions of itself e.g. digital OOH, Radio Podcasts, TV streaming media coverage, which can have an impact on programming, ratings and Food needs to work hard to recover lost ground from 2017. We are also
services as well as applications as a means to access content. behaviour. In the same breath, due to political instability and low purchase likely to see a growth in Government spending to inform the public on
• Media research is still in a state of flux, with lack of consensus for some power in 2018, the soccer world cup did not sway advertising spend changes in the unstable economic times within the South African landscape.
data as well as best practice methodologies. Forecasting accurate results significantly with only 3% growth year on year. This is a clear indication
Zero tax rated pink products will see this category perform better as well.
and conducting adequate trend analysis is thus an ongoing challenge that even with the elections, rugby and cricket world cup in 2019, this is
within the South African landscape. This causes complications for not expected to yield significant changes in advertising investment
budgeting and auditing. Creative use of data, such as fusion and mining growth overall. Top 10 Categories 2019f Gross Local 2019f vs. 2018
alternative sources, e.g. social media trends will start to gain more 2019f Currency Million YOY%
traction over the coming years. The economic context
Retail R10 23 130 828 7%
• The elections (May 2019) will determine South Africa’s long term The election of Cyril Ramaphosa as President has seen a positive swing in
economic prospects; possibilities include continuous rise in interest rates, attitude and economic forecasts are expected to improve. However, Financial Services R7 075 972 419 4%
downgrade of South Africa’s credit rating, inflation rates rising etc. Even the outcome of the elections (May 2019) may further improve the FMCG – Health & Beauty R4 704 820 899 10%
though, financial institutions seem more willing to extend credit which economy or result in even deeper uncertainty and further loss of
should boost spending a bit more, the cost of living is increasing so international investments. Travel Sport and Leisure R3 288 684 303 14%
disposable income is not as pertinent as it should be. Zero rated tax
products should see an increase in investment from an FMCG category Automotive R3 211 388 864 2%
THE 2020 AD SPEND FORECAST
point of view. Multimedia R2 982 651 290 9%
2020 is expected to see good growth in advertising spend, +8.4%. There
are a number of reasons; by 2020 the new economic policies that are being FMCG-Beverages R2 430 796 946 0%
THE 2019 AD SPEND FORECAST put in place to encourage growth and investment should be taking effect;
Advertiser confidence was impacted by the political and macroeconomic positive sentiment will influence budget size and attitude; policies around FMCG Food R1 602 243 779 3%
environment in 2017, the total entertainment and media revenue rose at a jobs and education should see the unemployment rate going down slightly. Professional Services R1 523 264 636 7%
low rate of 6.8% YoY. The Internet segment will continue to boost revenue The elections in 2019 will see additional advertising spend both around the
Government Education
and video games is set to become the third highest contributor within the elections and start building momentum in 2019. R1 254 020 375 3%
and Health
consumer segment.
On the positive side for 2019, television data is becoming more stable and d.
trends will start to emerge, making planning more predictable. On demand Social media is becoming the key to a successful marketing campaign, both
television/streaming is growing and the traditional linear way of viewing as a platform and as an information tool. Utilizing social listening, marketers
television/any medium is changing. Second screening is growing rapidly need to be flexible and agile to ensure that strategies align with the
especially amongst the younger millennials which has its own challenges for opinions and attitudes of the market, while still being sensitive around
advertisers, as consumer attention spans are depleting and the demand for issues of privacy. This is as relevant in South Africa as in other countries.
content marketing is defining the means of communications going forward. Consumers want to be treated as individuals and it is important not to let
technology get between your brand and your customer. The ‘human’
b. approach; showing a genuine interest in their opinions is key to keeping a
positive brand reputation. Content needs to be relevant and authentic. Local
Radio’s popularity fluctuates, as it is seen as a more tactical medium by
South African content, whether a Video on Instagram or a Facebook post,
advertisers, however its share of spend continues to grow. Radio streaming
needs to be accessible and current to have greater success in capturing the
is growing, particularly among younger audiences and will become
most endearing consumer. Using Social Media as a communications tool is
increasingly important as data costs come down and WIFI access increases.
ever more important in building an authentic relationship between the brand
Radio saw an increase in advertising spend in 2018. This was partly due
and consumer as a means to building brand equity.
to marketers shifting money from television to a medium that is more
flexible, has a lower entry point and which tends to perform well on call
to action campaigns.
Total Digital* 329% 14.2% 13.4% Total Digital* 100% 100% 100%
Online Video n.a. n.a. n.a. Online Video n.a. n.a. n.a.
Social Media 14.2% 14.2% 13.4% Social Media 44.2% 44.3% 44.3%
Paid Search 14.2% 14.2% 13.4% Paid Search 34.1% 34.1% 34.2%
Programmatic Programmatic
n.a. n.a. n.a. n.a. n.a. n.a.
Spend^ Spend^
DENTSU AEGIS NETWORK *Includes Mobile/Tablet and Desktop, ^Subset of Total Digital Spend 177
Appendices
178
Global Market Sizes & Growth Rates
COUNTRY BY COUNTRY MARKET SIZES AND GROWTH RATES
2011 2012 2013 2014 2015 2016 2017 2018 2019f 2020f
Austria 22.3 18.9 19.4 19.9 19.6 20.0 20.5 21.0 22.0 23.2
Belgium 40.5 40.1 39.4 38.5 41.2 43.0 40.3 42.0 40.3 41.0
Denmark 19.9 21.6 18.1 17.2 16.9 16.6 15.8 16.0 15.9 15.7
Finland 21.1 21.3 22.8 22.5 22.1 21.7 20.5 20.1 19.5 18.6
France 33.0 32.5 32.2 30.3 30.3 30.1 29.5 28.0 27.3 26.8
Germany 40.1 32.1 32.3 32.4 32.6 32.7 32.2 31.5 30.5 29.1
Greece 58.3 58.4 57.6 57.8 54.5 55.6 58.0 59.3 60.1 61.6
Ireland 28.5 28.7 28.2 27.0 26.9 26.4 24.1 22.7 22.0 21.4
Italy 53.6 51.6 52.1 52.6 52.1 53.2 52.0 51.3 49.9 49.6
Netherlands 23.6 25.5 25.6 25.8 26.1 25.6 24.6 24.3 23.7 23.1
Norway 21.0 22.2 22.2 21.8 22.1 23.0 22.0 20.7 19.8 19.2
Portugal 57.4 57.6 57.6 56.2 55.2 54.8 53.8 52.3 51.2 50.5
Spain 40.7 39.2 39.4 41.0 40.1 39.6 39.1 38.1 36.7 35.4
Sweden 22.0 22.5 21.6 21.2 19.2 17.2 16.0 16.2 15.5 14.4
Switzerland 24.1 21.6 21.6 21.4 20.9 21.8 17.8 17.3 17.5 17.1
UK 26.7 25.7 24.4 24.3 24.6 24.0 22.0 20.4 19.3 18.5
Western Europe 34.3 31.8 31.1 30.7 30.7 30.6 29.1 28.1 27.0 26.2
Bulgaria 56.8 58.3 58.6 56.2 55.5 55.6 54.8 55.0 55.0 54.4
Czech Republic 44.6 45.1 41.6 40.4 40.8 39.3 39.3 38.3 36.3 33.8
Estonia 31.6 30.8 31.5 25.4 24.6 22.9 22.6 22.7 22.6 22.6
Hungary 30.1 29.7 28.0 27.0 26.0 24.9 25.7 27.2 27.1 27.7
Latvia 45.1 45.7 44.3 44.0 42.7 40.4 39.4 38.3 37.4 36.3
Lithuania 47.5 47.3 44.7 41.4 38.5 34.7 33.9 33.3 32.5 32.1
Poland 56.9 56.2 50.0 50.9 50.4 49.4 48.5 48.9 48.5 48.1
Romania 72.6 69.9 67.3 64.5 64.6 63.3 63.0 64.6 65.3 64.7
Russia 49.7 47.6 46.7 45.1 41.9 41.4 41.0 39.9 36.5 34.5
Slovak Rep 44.6 44.3 45.4 45.0 45.4 48.6 50.5 50.9 50.6 50.3
Turkey
56.4 56.4 56.8 48.8 48.1 50.9 51.1 51.9 52.2 52.6
C&EE 51.4 49.9 47.5 45.8 44.2 43.9 43.4 43.0 41.0 39.8
Europe 36.1 33.7 32.9 32.4 32.1 32.0 30.7 29.8 28.7 27.8
2011 2012 2013 2014 2015 2016 2017 2018 2019f 2020f
USA 40.0 40.2 39.6 39.3 38.4 38.0 37.1 36.4 35.4 34.6
Canada 34.4 31.6 30.4 29.4 28.2 25.4 25.2 25.1 24.1 23.4
North America 39.8 39.8 39.2 38.9 38.0 37.5 36.7 35.9 34.9 34.1
Australia 31.2 31.1 31.4 30.1 27.3 25.4 24.3 22.3 21.4 20.4
China 53.9 51.8 50.1 45.5 39.6 35.0 31.1 26.4 23.4 20.6
Hong Kong 25.7 25.4 24.5 23.5 22.2 23.0 22.2 22.7 21.9 20.4
India 37.2 36.8 36.5 37.2 36.0 40.2 40.0 39.6 38.9 37.9
Indonesia 56.6 57.1 56.4 56.5 55.0 55.4 54.5 54.3 54.2 53.4
Japan 43.2 44.2 43.8 43.3 42.4 41.9 40.4 38.4 36.7 35.5
Malaysia 18.2 19.3 19.8 20.0 18.6 18.3 17.8 17.3 17.6 17.7
New Zealand 29.8 29.9 29.3 26.8 24.4 22.7 21.9 20.5 19.9 19.1
Philippines 56.8 61.9 62.1 60.6 59.8 59.6 59.6 53.4 47.0 45.9
Singapore 27.5 25.7 25.6 25.1 23.9 28.9 29.5 30.3 30.8 30.7
South Korea 38.3 37.3 36.2 37.4 37.6 36.4 34.8 33.4 32.6 31.4
Taiwan 51.9 52.2 53.9 43.3 43.5 42.4 41.2 38.8 36.5 34.8
Thailand 55.3 57.2 60.0 61.5 60.4 56.7 54.7 55.7 56.6 55.6
Vietnam 83.1 83.8 87.3 88.7 88.2 87.2 84.9 84.1 84.3 84.0
Asia Pacific 46.5 46.2 45.8 43.5 40.3 38.0 35.5 32.3 30.1 28.2
Argentina 44.0 45.0 43.9 43.1 44.1 42.8 43.5 41.8 41.3 40.0
Brazil 68.0 63.3 63.3 64.5 65.8 73.2 71.3 71.7 72.0 72.0
Colombia - 53.9 53.7 53.9 55.5 55.4 53.3 50.4 47.0 42.3
Mexico 62.6 61.2 59.4 58.0 52.5 50.0 46.1 43.0 40.8 39.3
Latin America 65.9 61.5 61.0 61.4 61.3 65.2 62.6 61.7 61.2 60.1
Bahrain 12.9 17.4 6.0 11.1 5.1 5.0 6.5 16.6 16.6 16.6
Egypt 66.5 85.3 88.1 92.2 90.9 90.6 68.7 71.2 82.4 95.9
Kuwait 31.4 29.0 28.3 35.7 25.3 10.1 8.2 7.3 7.0 7.2
Lebanon 70.0 52.6 56.1 58.0 59.0 54.0 52.4 51.5 51.7 52.4
Morocco 34.3 33.1 29.9 30.3 27.8 28.4 31.1 29.4 29.4 28.4
Oman 3.6 3.1 2.5 2.8 3.2 5.1 6.5 5.0 5.1 5.0
Pan Arab 94.8 95.9 96.1 96.3 97.0 97.7 97.8 98.1 98.3 98.4
Qatar 4.0 3.9 4.8 13.0 11.4 7.6 7.7 8.4 8.7 9.2
Saudi Arabia 5.8 4.6 4.2 4.3 3.7 2.7 3.4 10.4 11.9 13.4
UAE 4.4 4.4 3.9 5.0 4.5 6.4 5.6 4.2 4.1 4.1
MENA 54.2 55.0 54.3 56.8 58.1 58.8 57.0 56.5 55.8 55.4
Israel 40.6 41.3 41.9 39.2 38.2 37.0 37.1 37.0 36.9 36.9
South Africa 44.2 45.1 45.7 50.2 53.6 56.2 53.1 50.3 50.0 49.6
Other 43.1 44.0 44.8 47.4 49.9 51.7 49.3 47.1 46.9 46.8
GLOBAL 42.1 41.6 41.2 40.4 39.0 38.2 36.6 34.9 33.6 32.4
2011 2012 2013 2014 2015 2016 2017 2018 2019f 2020f
Austria 31.5 31.9 31.8 29.7 28.7 28.5 27.7 26.8 26.4 25.6
Belgium 25.1 24.6 25.0 24.8 22.4 22.4 20.3 19.2 20.0 20.1
Denmark 41.1 37.1 27.3 24.7 22.2 19.8 18.0 17.3 15.5 13.9
Finland 43.2 43.8 40.2 37.9 36.3 34.2 30.9 27.1 25.5 23.7
France 13.3 12.1 11.7 10.1 9.4 8.2 7.5 6.3 5.9 5.5
Germany 26.6 19.2 17.4 16.0 14.6 13.6 12.5 12.0 11.4 10.8
Greece 13.0 12.5 12.0 11.5 11.4 10.7 9.4 8.8 8.3 7.8
Ireland 30.3 26.8 23.8 20.9 18.7 16.3 13.8 11.9 10.4 9.1
Italy 12.1 11.2 9.7 8.6 7.7 7.1 6.5 6.0 5.5 4.9
Netherlands 26.3 22.1 19.1 16.7 14.6 12.7 11.4 10.5 9.8 9.2
Norway 37.4 35.3 31.2 27.0 21.9 18.1 14.9 13.4 12.0 10.6
Portugal 5.2 7.6 6.7 6.3 5.5 4.1 3.2 2.7 2.3 2.0
Spain 18.8 17.7 16.2 15.1 13.9 12.1 10.9 10.1 9.1 8.2
Sweden 34.0 30.7 28.8 26.8 23.6 19.5 15.7 13.0 11.1 7.6
Switzerland 34.5 27.6 25.4 24.9 23.0 20.5 15.6 13.0 10.2 8.6
UK 18.4 16.8 15.8 13.3 10.9 7.7 6.3 5.3 4.7 4.1
Western Europe 21.8 19.4 18.0 16.2 14.5 12.6 11.1 10.0 9.1 8.3
Bulgaria 8.6 8.9 8.4 8.5 7.6 6.4 5.8 5.0 4.4 3.5
Czech Republic 9.4 8.1 8.1 7.7 7.3 6.4 5.9 5.5 5.0 4.4
Estonia 27.4 26.8 24.3 18.2 17.3 15.9 14.8 14.4 13.9 13.2
Hungary 15.8 15.0 14.2 13.1 12.8 10.6 10.1 9.9 9.4 8.4
Latvia 10.6 9.1 8.9 7.6 5.7 5.0 4.1 4.3 3.9 3.4
Lithuania 17.6 16.1 13.8 10.7 8.4 6.5 5.8 5.6 5.0 4.7
Poland 6.6 5.3 3.3 2.7 2.3 1.9 1.5 1.4 1.3 1.3
Romania 3.4 3.5 3.1 3.0 2.4 1.8 1.3 0.9 0.7 0.5
Russia 7.8 7.0 5.7 4.9 3.8 2.8 2.1 1.5 1.3 1.0
Slovak Rep 11.4 10.1 8.9 7.8 7.6 5.7 4.8 4.4 4.2 3.5
Turkey
21.8 21.4 20.5 17.0 15.6 13.5 12.6 9.7 8.1 7.0
C&EE 9.3 8.4 7.3 6.4 5.6 4.8 4.0 3.2 2.8 2.5
Europe 20.5 18.3 16.9 15.1 13.6 11.7 10.3 9.2 8.4 7.6
2011 2012 2013 2014 2015 2016 2017 2018 2019f 2020f
USA 16.5 14.5 13.8 12.8 11.8 10.2 9.1 7.9 6.8 5.9
Canada 25.1 23.5 21.8 20.7 19.7 17.4 15.2 12.1 11.6 11.1
North America 16.8 14.9 14.1 13.2 12.1 10.5 9.3 8.0 7.0 6.1
Australia 27.2 23.5 19.2 15.8 13.5 11.0 10.3 10.2 8.7 7.6
China 15.1 12.6 9.9 7.5 5.3 3.2 1.7 1.2 0.8 0.6
Hong Kong 32.8 29.5 30.1 25.7 25.2 22.1 18.7 14.1 10.5 7.1
India 40.0 38.9 37.6 37.6 35.3 32.5 30.8 28.8 26.8 24.7
Indonesia 35.5 32.9 32.5 30.9 28.6 25.6 23.3 21.0 18.5 16.1
Japan 15.0 14.7 14.2 13.4 12.5 11.6 10.7 9.6 8.9 8.2
Malaysia 53.0 50.8 49.4 47.3 40.6 38.0 36.1 31.6 26.1 24.1
New Zealand 28.1 26.3 22.9 21.1 19.3 16.9 13.7 11.2 9.3 7.7
Philippines 7.6 6.6 5.7 5.7 4.8 3.8 2.5 2.1 1.6 1.3
Singapore 41.4 40.8 38.8 37.5 34.9 31.5 26.5 21.4 17.1 13.4
South Korea 20.3 19.0 17.4 16.0 15.1 14.3 13.6 12.8 12.1 11.3
Taiwan 21.2 20.7 18.8 13.9 11.6 9.5 8.1 6.9 6.1 5.4
Thailand 15.2 13.5 12.9 11.5 9.9 8.4 7.5 5.7 2.2 1.7
Vietnam 7.7 6.5 4.5 3.3 2.8 2.3 1.7 1.4 0.8 0.6
Asia Pacific 18.6 16.8 14.8 13.0 10.9 9.3 7.9 6.8 6.0 5.4
Argentina 34.8 33.6 29.3 27.1 25.7 23.2 21.2 19.7 17.8 16.8
Brazil 12.0 10.3 9.0 7.3 5.8 7.0 6.9 6.3 6.3 6.0
Colombia - 22.5 22.2 22.1 20.1 18.4 17.8 17.0 16.3 15.3
Mexico 7.9 7.4 6.9 6.5 6.2 5.8 5.5 4.9 4.5 4.2
Latin America 11.7 11.4 10.5 9.3 8.2 8.9 8.8 8.2 7.9 7.6
Bahrain 73.8 73.8 81.3 74.7 80.4 80.6 79.7 70.9 70.9 70.9
Egypt 28.5 12.4 9.7 5.7 5.1 5.3 2.9 1.7 1.6 1.3
Kuwait 57.9 56.8 58.9 50.4 50.4 57.2 44.0 34.9 33.5 29.1
Lebanon 5.6 9.3 7.4 7.6 6.4 5.9 5.7 5.8 5.5 4.6
Morocco 14.8 15.1 13.6 11.3 9.9 10.6 7.0 6.3 6.3 5.6
Oman 91.9 93.2 93.9 91.9 91.7 88.8 86.5 85.8 84.8 83.9
Pan Arab 1.6 1.2 1.3 1.3 1.1 0.6 0.5 0.4 0.4 0.3
Qatar 74.1 78.0 76.8 52.0 60.3 58.2 65.6 65.2 63.8 61.6
Saudi Arabia 64.6 61.5 60.5 58.9 59.8 48.4 43.4 40.3 38.7 38.1
UAE 42.5 41.6 41.4 41.3 38.0 28.4 24.5 20.1 16.1 14.4
MENA 25.5 24.7 24.4 21.7 19.7 16.2 14.6 13.0 12.1 11.3
Israel 26.0 24.2 21.0 18.8 17.6 15.0 13.3 12.6 12.0 11.8
South Africa 23.5 22.4 25.8 19.2 17.5 15.3 15.1 14.0 13.5 13.1
Other 24.3 22.9 24.7 19.1 17.5 15.2 14.7 13.7 13.2 12.8
GLOBAL 18.2 16.3 15.1 13.6 12.1 10.4 9.1 8.0 7.1 6.3
2011 2012 2013 2014 2015 2016 2017 2018 2019f 2020f
Austria 24.0 22.9 22.9 21.5 20.6 19.7 19.1 19.0 18.1 17.3
Belgium 7.6 7.3 7.0 6.8 7.6 6.9 6.3 5.8 5.9 6.1
Denmark 8.1 7.7 8.7 8.5 7.6 7.2 6.7 5.6 5.3 5.2
Finland 11.7 10.3 9.3 8.1 7.1 6.4 6.2 5.9 5.6 5.2
France 13.9 13.5 12.5 10.7 10.1 9.3 8.1 6.9 6.4 6.0
Germany 21.4 15.0 14.5 13.5 12.5 11.8 10.7 9.9 9.0 8.4
Greece 12.6 11.6 11.3 11.1 11.9 10.9 10.0 8.8 8.3 7.7
Ireland 2.1 1.3 1.2 0.8 0.7 0.7 0.6 0.5 0.5 0.4
Italy 9.4 8.7 7.4 6.7 6.3 5.8 5.4 4.9 4.4 4.0
Netherlands 12.9 11.5 10.3 9.3 8.5 7.6 7.0 6.3 5.7 5.3
Norway 6.8 6.4 5.6 4.8 4.3 3.9 3.3 2.9 2.6 2.3
Portugal 10.2 6.5 6.2 5.8 5.2 4.2 3.4 2.6 2.1 1.9
Spain 6.9 6.8 5.9 5.5 5.1 4.7 4.4 4.1 3.7 3.4
Sweden 7.5 6.7 5.5 5.1 4.7 5.0 4.2 3.5 3.0 2.8
Switzerland 20.6 17.2 16.6 15.9 14.7 14.2 10.8 9.5 7.1 6.2
UK 7.6 6.6 5.8 4.8 3.8 3.0 2.3 1.8 1.6 1.3
Western Europe 12.1 10.7 9.9 8.9 8.2 7.5 6.6 5.8 5.2 4.8
Bulgaria 5.7 4.8 4.3 4.1 4.1 4.1 2.7 2.4 1.6 1.3
Czech Republic 11.2 10.3 10.6 10.0 9.8 8.7 8.0 7.6 6.8 6.0
Estonia 6.4 6.6 6.8 5.7 5.6 5.3 3.9 3.7 3.4 3.2
Hungary 14.6 14.4 12.9 11.7 10.9 10.0 9.2 7.8 7.3 6.5
Latvia 9.7 10.0 10.5 10.2 9.4 7.2 6.0 5.8 5.4 4.9
Lithuania 10.3 10.1 9.9 9.7 9.1 7.9 6.5 5.4 5.0 4.8
Poland 9.0 7.8 7.8 6.5 5.7 5.1 4.5 4.2 4.0 3.8
Romania 3.5 3.5 3.2 2.7 2.2 1.9 1.4 1.1 0.9 0.7
Russia 7.5 6.7 5.5 4.7 4.0 3.3 2.8 2.3 2.1 1.9
Slovak Rep 13.6 12.1 10.6 9.8 9.5 7.9 6.9 6.1 5.6 4.7
Turkey
2.2 2.0 1.8 1.4 1.2 1.3 1.1 0.8 0.7 0.6
C&EE 8.2 7.3 6.6 5.7 5.1 4.3 3.7 3.2 2.9 2.7
Europe 11.7 10.4 9.6 8.6 7.8 7.1 6.3 5.5 4.9 4.5
2011 2012 2013 2014 2015 2016 2017 2018 2019f 2020f
USA 12.2 12.0 11.7 11.1 10.5 10.0 9.2 8.3 7.5 6.8
Canada 5.3 4.8 4.6 4.3 3.8 3.2 3.3 2.5 2.4 2.3
North America 11.9 11.7 11.4 10.8 10.2 9.7 8.9 8.1 7.3 6.6
Australia 5.8 4.8 4.4 3.1 2.9 2.5 1.9 1.5 1.2 1.1
China 2.0 1.8 1.5 1.2 0.9 0.7 0.5 0.4 0.3 0.3
Hong Kong 15.6 15.3 14.5 12.1 10.6 7.1 4.5 2.8 1.7 0.9
India 4.3 4.1 3.8 3.6 3.3 3.0 2.9 2.6 2.3 2.0
Indonesia 3.1 2.7 2.6 2.4 2.0 1.6 1.1 0.7 0.5 0.3
Japan 6.4 6.0 5.8 5.5 5.4 4.7 4.2 3.7 3.2 2.8
Malaysia 2.7 2.5 2.1 1.9 2.0 1.9 1.8 1.8 1.9 1.8
New Zealand 10.1 10.2 9.8 9.2 8.5 8.1 7.1 5.9 4.9 4.0
Philippines 2.1 2.3 1.8 1.6 1.2 0.8 0.4 0.3 0.1 0.1
Singapore 5.7 5.5 5.0 5.0 3.6 3.4 3.4 3.2 3.0 2.8
South Korea 6.0 5.8 5.2 4.7 4.2 3.7 3.3 2.8 2.5 2.3
Taiwan 11.3 11.6 11.5 8.5 7.4 5.9 4.5 3.7 3.3 3.0
Thailand 6.1 5.0 4.8 4.3 3.4 2.5 1.9 1.2 0.4 0.2
Vietnam 5.1 4.4 3.0 2.0 1.6 1.2 1.2 0.9 1.1 1.1
Asia Pacific 4.6 4.2 3.7 3.3 2.9 2.4 1.9 1.6 1.4 1.2
Argentina 4.8 4.6 3.9 3.3 3.0 2.6 2.1 2.0 1.8 1.7
Brazil 7.4 5.8 4.9 3.8 3.0 3.8 3.7 3.0 2.8 2.8
Colombia - 5.1 4.9 4.4 3.5 2.9 2.8 2.6 2.2 1.8
Mexico 6.4 6.4 5.9 5.1 4.3 4.1 4.0 3.3 2.9 2.5
Latin America 7.1 5.9 5.1 4.1 3.3 3.7 3.5 2.9 2.7 2.5
Bahrain 9.3 7.1 10.3 11.0 11.4 11.2 10.4 9.7 9.7 9.7
Egypt 1.0 0.4 0.3 0.3 0.3 0.2 0.1 0.1 0.1 0.1
Kuwait 6.6 5.9 6.1 4.3 5.2 6.9 4.9 3.9 3.7 3.5
Lebanon 5.8 8.2 6.2 5.5 5.0 4.6 4.5 3.8 3.6 3.6
Morocco 7.4 7.5 6.8 5.7 5.0 5.3 4.6 4.2 4.2 3.7
Oman 4.5 3.7 3.7 4.0 3.8 4.4 3.7 4.5 4.1 3.8
Pan Arab 3.5 2.9 2.6 2.4 1.9 1.7 1.7 1.5 1.3 1.3
Qatar 1.6 2.0 3.2 3.1 3.9 5.7 3.5 3.4 3.5 3.8
Saudi Arabia 2.2 1.4 1.7 2.1 2.0 2.0 1.3 1.2 1.3 1.3
UAE 18.6 17.8 15.7 14.0 13.2 11.9 9.0 6.1 5.9 5.3
MENA 6.3 5.7 5.3 4.7 4.3 4.2 3.6 2.9 2.8 2.7
Israel 4.3 4.6 4.0 3.8 3.6 3.0 2.8 2.3 2.0 1.6
South Africa 9.1 7.8 5.6 6.1 5.2 4.5 4.5 3.2 3.1 3.0
Other 7.6 6.9 5.2 5.5 4.8 4.2 4.1 3.0 2.9 2.7
GLOBAL 9.4 8.7 8.2 7.5 6.9 6.4 5.7 5.0 4.5 4.1
2011 2012 2013 2014 2015 2016 2017 2018 2019f 2020f
Austria 5.7 6.0 6.0 5.7 5.6 5.6 5.5 5.5 5.4 5.4
Belgium 12.4 12.9 13.1 13.9 13.4 14.1 14.4 14.7 15.0 15.3
Denmark 2.4 2.6 2.3 2.4 2.5 2.5 2.5 2.5 2.5 2.5
Finland 4.3 4.2 4.4 4.9 5.1 5.3 5.5 5.8 6.0 6.3
France 7.1 7.2 7.4 6.8 6.7 6.7 6.6 6.5 6.4 6.3
Germany 6.9 5.5 5.6 5.3 5.2 4.6 4.3 3.9 3.6 3.2
Greece 7.9 7.5 7.5 7.2 7.4 7.1 7.0 6.9 6.7 6.6
Ireland 13.9 13.6 12.5 11.4 11.2 10.3 9.5 8.8 8.0 7.3
Italy 5.6 5.7 5.7 5.5 5.8 5.7 5.7 5.7 5.8 5.8
Netherlands 6.2 5.9 6.2 6.2 6.0 6.1 6.1 6.1 6.1 6.1
Norway 3.5 3.7 3.5 4.1 4.2 4.4 4.6 4.8 5.0 5.2
Portugal 6.8 7.4 7.0 7.0 6.7 6.8 6.8 6.7 6.7 6.6
Spain 9.5 9.8 9.3 9.1 9.1 8.9 8.7 8.5 8.4 8.2
Sweden 2.9 2.5 2.2 2.6 2.6 2.4 2.3 2.3 2.2 2.1
Switzerland 5.9 5.1 5.1 4.7 4.2 3.9 3.6 3.2 2.9 2.5
UK 4.0 4.0 3.6 3.5 3.4 3.2 3.1 2.9 2.8 2.6
Western Europe 6.2 6.0 5.8 5.7 5.6 5.4 5.2 5.1 4.9 4.7
Bulgaria 7.1 5.0 4.8 5.1 4.9 4.1 3.7 3.2 2.8 2.4
Czech Republic 6.8 6.4 6.4 6.1 6.0 5.8 5.6 5.4 5.2 5.0
Estonia 9.9 10.1 9.9 8.7 8.6 8.2 7.8 7.4 7.0 6.6
Hungary 8.3 6.7 7.8 7.3 7.0 6.8 6.6 6.4 6.3 6.1
Latvia 10.6 10.7 11.7 13.3 12.3 13.5 14.2 14.8 15.4 16.0
Lithuania 7.9 7.8 7.5 7.6 7.1 7.0 6.8 6.7 6.5 6.3
Poland 8.4 8.6 8.0 8.3 8.5 8.3 8.3 8.3 8.3 8.2
Romania 5.6 6.1 6.2 6.2 6.0 6.3 6.4 6.5 6.6 6.7
Russia 4.6 5.0 5.2 5.0 4.8 5.0 5.1 5.1 5.2 5.2
Slovak Rep 6.7 6.3 5.9 4.9 4.5 3.9 3.3 2.7 2.2 1.6
Turkey
2.8 2.5 2.3 2.0 2.0 1.7 1.5 1.3 1.1 0.9
C&EE 6.1 6.1 5.9 5.8 5.7 5.5 5.4 5.3 5.2 5.1
Europe 6.2 6.0 5.8 5.7 5.6 5.4 5.2 5.1 4.9 4.8
2011 2012 2013 2014 2015 2016 2017 2018 2019f 2020f
USA 10.6 10.3 10.4 10.2 9.8 9.5 9.2 9.0 8.8 8.5
Canada 6.0 5.6 5.8 5.5 5.4 5.2 5.3 5.3 5.1 4.9
North America 10.4 10.1 10.2 10.0 9.7 9.4 9.1 8.9 8.6 8.3
Australia 8.0 8.1 8.1 8.1 7.7 7.7 7.5 7.3 7.1 6.9
China 3.0 3.0 2.8 2.7 2.6 2.4 2.3 2.1 2.0 1.9
Hong Kong 3.5 3.0 2.9 2.5 2.6 3.1 3.4 3.4 3.2 3.0
India 4.8 4.8 4.9 4.7 4.3 4.4 4.2 3.9 3.6 3.3
Indonesia 1.8 1.5 1.5 1.3 1.3 1.3 1.4 1.5 1.5 1.5
Japan 3.1 2.9 2.9 2.8 2.8 2.7 2.7 2.6 2.5 2.4
Malaysia 6.7 6.7 6.4 6.0 8.6 8.5 8.4 8.7 9.1 9.2
New Zealand 11.9 12.1 12.4 12.2 11.0 11.0 10.7 10.0 9.5 9.1
Philippines 24.3 19.2 19.1 20.4 22.0 24.0 26.2 32.1 38.6 38.4
Singapore 8.1 7.9 8.3 8.6 8.4 8.3 8.0 7.7 7.3 6.8
South Korea 3.2 2.7 2.5 2.9 3.0 3.0 2.6 2.2 2.1 2.0
Taiwan 8.2 7.7 6.8 5.5 4.9 3.9 3.4 3.5 3.4 3.2
Thailand 6.2 5.7 5.4 4.9 4.5 4.5 4.4 4.5 4.1 3.7
Vietnam 0.2 0.1 0.1 0.1 0.2 0.3 2.0 2.3 1.8 1.8
Asia Pacific 4.1 3.9 3.7 3.6 3.6 3.6 3.6 3.6 3.6 3.4
Argentina 3.2 3.7 3.7 4.6 5.2 6.0 6.2 6.7 6.3 6.1
Brazil 4.0 3.6 3.6 3.4 3.3 3.0 3.6 4.0 3.8 3.9
Colombia - 11.5 11.8 11.9 12.3 12.6 13.4 13.7 12.9 11.7
Mexico 8.2 8.0 7.8 7.6 7.3 6.8 6.4 5.7 5.4 5.1
Latin America 5.0 5.2 5.1 4.9 4.8 4.6 5.0 5.2 4.8 4.8
Bahrain 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Egypt 4.0 1.9 1.8 1.8 3.7 3.9 2.1 2.3 2.7 2.7
Kuwait 1.7 1.3 1.4 2.1 3.2 3.3 4.1 4.6 4.9 5.2
Lebanon 5.4 8.4 7.3 6.7 7.0 7.3 6.6 7.1 7.2 7.3
Morocco 17.4 16.5 23.5 24.7 26.9 24.6 24.4 27.3 27.3 30.0
Oman - - - - - - - - - -
Pan Arab - - - - - - - - - -
Qatar 1.5 2.1 1.9 2.1 3.0 0.0 0.0 0.0 0.0 0.0
Saudi Arabia 10.5 13.2 14.9 18.3 18.8 25.8 23.1 21.4 21.2 20.9
UAE 6.1 8.0 11.8 9.1 13.3 16.0 20.5 24.6 25.6 25.6
MENA 4.1 4.4 5.7 5.7 6.6 7.3 8.3 9.4 9.9 10.5
Israel 6.0 6.3 6.5 6.7 6.9 7.0 5.7 5.7 5.5 5.4
South Africa 14.4 15.5 14.9 15.7 15.7 16.2 19.1 15.8 16.2 16.6
Other 11.7 12.8 12.9 13.4 13.6 14.1 15.8 13.3 13.7 14.1
GLOBAL 7.3 7.0 7.0 6.8 6.6 6.5 6.3 6.2 6.1 5.9
2011 2012 2013 2014 2015 2016 2017 2018 2019f 2020f
Austria 0.4 0.3 0.4 0.4 0.3 0.3 0.3 0.3 0.3 0.3
Belgium 0.9 0.9 1.0 1.0 1.0 0.8 0.7 0.7 0.7 0.8
Denmark 0.5 0.6 0.6 0.7 0.7 0.7 0.7 0.8 0.9 1.0
Finland 0.2 0.2 0.2 0.3 0.4 0.4 0.6 0.6 0.6 0.6
France 1.0 1.0 0.9 0.8 0.8 0.8 0.9 0.8 0.8 0.8
Germany 0.0 0.5 0.5 0.5 0.5 0.5 0.5 0.4 0.4 0.3
Greece - - - - - - - - - -
Ireland 0.9 1.0 1.0 0.8 0.7 0.7 0.7 0.7 0.6 0.6
Italy 0.5 0.5 0.4 0.3 0.3 0.3 0.3 0.3 0.3 0.3
Netherlands 6.2 5.9 6.2 6.2 6.0 5.8 5.7 5.6 5.5 5.4
Norway 0.9 0.9 0.9 0.7 0.8 0.9 1.0 1.1 1.2 1.3
Portugal 0.4 0.4 0.3 0.2 0.3 0.4 0.4 0.4 0.4 0.5
Spain 0.5 0.5 0.5 0.6 0.4 0.4 0.6 0.6 0.6 0.7
Sweden 0.5 0.4 0.4 0.5 0.5 0.5 0.5 0.5 0.5 0.5
Switzerland 0.7 0.5 0.7 0.7 0.8 0.7 0.6 0.6 0.7 0.8
UK 1.3 1.5 1.2 1.2 1.4 1.5 1.4 1.5 1.4 1.3
Western Europe 0.7 0.8 0.7 0.7 0.8 0.8 0.8 0.8 0.8 0.8
Bulgaria - - - - - - - - - -
Czech Republic 0.5 0.5 0.5 0.5 0.5 0.4 0.4 0.4 0.4 0.3
Estonia - - - - - - - - - -
Hungary 0.7 0.9 0.8 0.9 1.0 1.0 1.0 1.3 1.2 1.1
Latvia 0.5 0.5 0.4 0.6 0.8 0.8 0.9 0.9 0.9 0.8
Lithuania 0.3 0.4 0.5 0.4 0.5 0.7 0.7 1.0 1.0 1.1
Poland 2.1 2.5 1.5 1.4 1.4 1.4 1.4 1.3 1.3 1.2
Romania 0.6 0.6 0.7 0.7 0.6 0.6 0.6 0.5 0.5 0.5
Russia 1.6 1.7 1.7 1.5 1.3 0.9 0.8 0.8 0.8 0.7
Slovak Rep 0.2 0.2 0.2 0.2 0.3 0.3 0.3 0.3 0.2 0.2
Turkey
1.2 1.1 1.1 1.1 1.0 1.1 1.2 1.1 1.2 1.2
C&EE 1.4 1.5 1.4 1.2 1.1 1.0 0.9 0.9 0.8 0.8
Europe 0.7 0.9 0.8 0.8 0.8 0.8 0.8 0.8 0.8 0.8
2011 2012 2013 2014 2015 2016 2017 2018 2019f 2020f
USA 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6
Canada - - - - - - - - - -
North America 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6
Australia 0.6 0.7 0.8 0.7 0.8 0.8 0.8 0.8 0.7 0.7
China - - - - - - - - - -
Hong Kong - - - - - - - - - -
India 3.1 3.1 3.0 3.0 2.8 1.9 2.0 2.0 2.1 2.1
Indonesia 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Japan - - - - - - - - - -
Malaysia 0.4 0.6 0.6 0.7 2.4 2.5 2.7 2.7 2.9 2.9
New Zealand 0.3 0.3 0.3 0.4 0.4 0.4 0.4 0.4 0.4 0.4
Philippines 0.2 0.2 0.2 0.2 0.2 0.2 0.1 0.1 0.1 0.2
Singapore 0.4 0.3 0.4 0.6 0.5 0.0 0.0 0.0 0.0 0.0
South Korea 1.2 1.8 1.9 1.9 2.1 2.2 2.2 2.0 2.0 1.9
Taiwan 0.4 0.4 0.5 0.5 0.6 0.4 0.4 0.3 0.3 0.3
Thailand 7.6 7.0 4.5 3.8 4.1 4.7 6.6 6.8 6.0 5.7
Vietnam 0.4 0.4 0.5 0.5 0.6 0.4 0.4 0.3 0.3 0.3
Asia Pacific 0.4 0.4 0.4 0.3 0.4 0.4 0.4 0.4 0.4 0.4
Argentina 1.3 1.3 1.2 1.2 1.3 1.2 1.0 0.9 0.9 0.8
Brazil 0.3 0.3 0.3 0.3 0.3 0.3 1.5 1.4 1.7 2.1
Colombia - 0.2 0.2 0.2 0.2 0.3 0.3 0.3 0.3 0.3
Mexico 1.1 1.0 1.0 0.9 0.8 0.8 0.8 0.7 0.7 0.7
Latin America 0.5 0.5 0.4 0.4 0.4 0.5 1.2 1.1 1.4 1.6
Bahrain 2.8 0.5 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Egypt - - - - - - - - - -
Kuwait - - - - - - - - - -
Lebanon 0.2 0.3 0.2 0.4 0.4 0.3 0.3 0.7 0.7 0.7
Morocco 0.7 0.7 0.9 1.4 1.9 2.3 2.0 2.0 2.0 1.9
Oman 0.0 0.0 0.0 1.2 1.3 1.7 3.3 4.6 6.0 7.3
Pan Arab - - - - - - - - - -
Qatar 0.0 0.0 0.0 0.0 0.0 0.0 0.8 1.3 1.4 1.5
Saudi Arabia - - - - - - - - - -
UAE 1.0 1.4 1.8 3.1 3.6 3.8 4.0 4.2 4.7 5.0
MENA 0.3 0.3 0.3 0.6 0.7 0.8 0.9 1.0 1.1 1.2
Israel 1.0 1.2 1.2 1.1 1.2 1.0 1.1 1.0 1.0 1.0
South Africa 1.6 1.7 1.3 1.3 1.2 1.2 1.2 0.9 0.8 0.8
Other 1.4 1.6 1.2 1.2 1.2 1.1 1.2 0.9 0.9 0.8
GLOBAL 0.6 0.6 0.5 0.5 0.6 0.6 0.6 0.6 0.6 0.6
2011 2012 2013 2014 2015 2016 2017 2018 2019f 2020f
Austria 5.7 6.3 6.2 6.2 6.3 6.1 6.2 6.0 5.9 5.9
Belgium 8.2 8.7 8.5 8.6 8.7 8.2 7.8 8.0 8.1 8.1
Denmark 5.5 5.1 3.3 3.1 3.1 3.0 3.0 3.3 3.9 4.5
Finland 3.3 3.3 3.5 3.7 4.2 4.2 4.9 5.5 5.9 6.1
France 11.4 11.4 11.5 11.0 10.9 11.2 10.6 10.6 10.4 10.4
Germany 4.9 3.7 3.8 3.8 4.1 4.1 4.4 4.2 4.2 4.3
Greece 4.0 4.1 4.1 4.3 5.6 5.6 5.5 5.8 6.0 6.0
Ireland 7.2 7.2 7.8 9.3 9.5 9.6 9.8 9.8 9.6 9.3
Italy 6.1 5.8 5.4 4.8 5.1 4.7 4.7 4.7 4.8 4.8
Netherlands 4.2 4.3 4.3 4.3 4.6 4.7 4.7 4.7 4.7 4.6
Norway 3.5 3.6 3.5 3.2 3.4 3.7 4.1 4.0 4.1 4.3
Portugal 13.9 12.2 11.9 12.3 11.7 12.0 12.8 13.4 13.6 13.8
Spain 7.2 7.0 6.5 6.3 6.5 6.0 6.0 6.0 6.0 6.0
Sweden 4.5 4.2 3.7 4.2 4.3 5.0 5.1 5.6 5.8 5.8
Switzerland 10.3 9.6 10.5 9.9 10.0 10.5 8.8 8.6 8.3 8.1
UK 6.6 6.9 6.7 6.3 6.1 6.1 5.7 5.4 5.2 5.0
Western Europe 6.9 6.6 6.5 6.3 6.4 6.4 6.2 6.1 6.1 6.0
Bulgaria 12.0 12.3 12.3 13.0 13.1 13.0 12.6 11.7 11.0 10.5
Czech Republic 9.3 8.9 8.9 7.9 7.6 6.6 6.2 5.9 5.5 5.1
Estonia 9.2 9.2 10.2 8.5 9.0 9.5 13.4 13.9 14.5 14.9
Hungary 11.8 11.7 11.9 11.9 11.2 10.7 10.7 9.7 9.4 8.9
Latvia 9.3 9.7 10.4 10.1 9.2 9.8 9.8 10.4 10.3 10.4
Lithuania 8.1 7.4 7.0 7.8 8.0 7.3 7.5 8.5 8.4 8.4
Poland 7.1 6.9 6.4 6.2 6.0 5.9 5.8 5.5 5.3 5.2
Romania 7.4 7.1 6.9 7.6 7.3 7.0 6.6 6.3 5.9 5.7
Russia 12.9 12.5 12.1 11.4 9.8 9.6 9.3 8.5 8.1 7.7
Slovak Rep 10.1 9.5 9.1 10.8 10.6 10.4 10.0 9.7 9.3 8.9
Turkey
7.4 7.4 7.5 6.6 6.5 6.1 5.8 6.1 6.1 6.4
C&EE 10.2 10.1 10.1 9.6 8.7 8.4 8.2 7.7 7.5 7.2
Europe 7.2 7.0 6.9 6.7 6.6 6.6 6.4 6.3 6.2 6.2
2011 2012 2013 2014 2015 2016 2017 2018 2019f 2020f
USA 3.9 3.9 3.9 3.9 3.9 3.9 3.9 3.8 3.8 3.8
Canada 5.2 4.7 4.9 4.8 4.8 5.1 5.8 6.0 6.2 6.3
North America 4.0 3.9 3.9 4.0 3.9 3.9 4.0 3.9 3.9 3.9
Australia 4.9 5.0 5.0 5.3 5.8 6.0 6.3 6.6 6.9 7.2
China 11.0 11.3 10.4 10.2 9.7 9.3 8.9 9.4 9.8 9.9
Hong Kong 16.2 17.4 15.5 14.5 14.1 15.5 16.1 13.5 11.4 9.5
India 7.5 7.6 7.8 7.3 7.6 5.9 5.8 5.7 5.6 5.4
Indonesia 2.9 2.7 2.7 1.9 1.5 1.4 1.6 1.7 1.8 1.8
Japan 12.0 11.7 11.7 11.6 11.5 11.1 10.8 10.5 10.1 9.7
Malaysia 10.1 9.0 9.2 9.6 9.2 9.0 8.8 9.3 9.8 9.6
New Zealand 4.0 3.3 3.5 3.6 3.9 4.8 5.4 5.5 5.6 5.7
Philippines 7.5 8.0 8.8 9.1 9.3 8.8 8.3 8.8 9.2 10.4
Singapore 9.5 11.1 11.9 10.9 10.3 10.8 9.7 9.0 8.3 7.4
South Korea 8.5 8.7 8.9 8.1 8.0 7.6 7.3 7.3 7.1 7.1
Taiwan 7.0 7.4 8.5 7.1 7.1 6.9 6.6 7.7 7.8 7.7
Thailand 8.9 9.1 8.8 8.5 7.5 10.0 12.9 12.9 13.0 12.7
Vietnam - - - - - - - - - -
Asia Pacific 10.2 10.3 9.9 9.6 9.4 9.0 8.8 9.0 9.1 9.0
Argentina 5.1 4.3 4.0 3.6 3.3 2.7 3.5 3.9 4.1 4.2
Brazil 3.1 2.8 3.1 3.4 3.3 4.7 3.5 3.0 3.1 3.1
Colombia - 2.9 2.9 2.9 3.4 3.5 3.2 2.7 2.9 3.0
Mexico 7.1 7.1 7.0 6.9 6.8 6.5 6.3 6.9 6.6 6.4
Latin America 4.1 3.7 3.9 4.0 4.0 4.8 4.0 3.8 3.9 3.8
Bahrain 1.2 1.3 2.4 3.1 3.1 3.2 3.4 2.9 2.9 2.9
Egypt - - - - - - - - - -
Kuwait 2.4 7.0 5.2 7.4 15.9 22.5 38.7 49.3 50.8 54.9
Lebanon 13.0 21.2 22.8 21.7 22.2 27.8 30.5 31.1 31.3 31.4
Morocco 25.4 27.0 25.3 26.5 28.5 28.9 30.8 30.8 30.8 30.4
Oman - - - - - - - - - -
Pan Arab - - - - - - - - - -
Qatar 18.8 13.9 13.3 29.8 21.3 28.5 22.4 21.7 22.5 23.9
Saudi Arabia 17.0 19.3 18.7 16.4 15.8 21.1 28.8 26.7 26.8 26.4
UAE 27.5 26.7 25.4 27.5 27.3 33.6 36.4 40.8 43.6 45.6
MENA 9.7 9.9 9.9 10.5 10.6 12.6 15.3 16.8 18.0 18.9
Israel 4.9 4.9 4.9 5.3 5.4 7.0 7.4 7.5 7.7 7.6
South Africa 4.6 5.0 4.1 4.3 3.8 3.8 3.9 2.9 2.7 2.6
Other 4.7 5.0 4.3 4.6 4.1 4.5 4.7 4.0 3.9 3.7
GLOBAL 6.7 6.7 6.5 6.5 6.4 6.3 6.2 6.3 6.3 6.3
2011 2012 2013 2014 2015 2016 2017 2018 2019f 2020f
Austria 10.4 13.6 13.3 16.7 18.9 19.6 20.7 21.3 21.7 22.2
Belgium 5.3 5.6 6.0 6.3 5.6 5.0 11.1 10.3 10.8 10.0
Denmark 22.5 25.3 39.7 43.3 47.0 50.1 53.4 54.3 55.6 56.8
Finland 16.3 16.9 19.6 22.7 24.8 27.8 31.6 35.2 37.2 39.8
France 20.5 22.3 23.8 30.2 31.8 33.8 37.3 41.5 43.6 45.1
Germany 0.0 23.9 26.0 28.5 30.5 32.1 34.4 36.7 39.1 41.8
Greece 4.2 5.8 7.5 8.1 9.3 9.9 9.8 10.0 9.9 9.6
Ireland 17.1 21.5 25.4 29.9 32.2 36.0 40.9 44.7 47.5 49.9
Italy 12.7 16.4 19.4 21.4 22.7 23.4 25.4 26.7 28.8 30.1
Netherlands 26.7 30.5 34.4 37.5 40.0 43.4 46.5 48.5 50.5 52.2
Norway 26.8 27.8 33.2 38.3 43.3 46.2 50.9 54.4 57.1 59.0
Portugal 6.2 8.3 10.4 12.1 15.3 17.5 19.4 21.6 23.4 24.5
Spain 16.4 19.1 22.1 22.4 25.0 28.7 30.5 32.6 35.3 37.9
Sweden 28.5 33.0 37.7 39.6 45.1 50.1 55.6 58.3 61.2 65.9
Switzerland 4.0 18.4 20.1 22.6 26.3 28.2 43.2 48.1 53.7 57.1
UK 35.5 38.5 42.3 46.6 49.7 54.3 58.8 62.3 64.7 66.8
Western Europe 18.0 24.7 27.9 31.4 34.0 36.8 40.9 44.0 46.7 48.9
Bulgaria 9.7 10.7 11.6 13.1 14.8 16.0 18.9 21.0 23.4 25.9
Czech Republic 18.2 20.7 23.9 27.5 28.0 33.1 35.2 37.6 41.9 46.6
Estonia 15.5 16.6 17.3 33.6 34.9 38.0 36.2 35.6 35.3 35.3
Hungary 18.7 21.6 24.4 28.1 31.0 36.6 37.8 39.1 41.0 43.1
Latvia 14.2 14.4 14.0 14.1 19.9 24.4 27.9 29.0 31.3 33.7
Lithuania 8.4 10.9 16.6 22.4 28.4 36.6 39.0 39.4 41.5 42.4
Poland 9.9 12.6 23.0 24.0 25.7 27.7 29.8 30.3 31.4 32.4
Romania 6.8 9.3 12.6 15.3 16.8 19.6 21.8 21.5 22.0 23.3
Russia 15.9 19.6 23.0 27.3 34.4 37.4 39.9 43.3 47.9 50.9
Slovak Rep 13.4 17.4 20.0 21.5 22.1 22.9 23.4 24.8 26.7 29.4
Turkey
8.3 9.2 9.9 23.1 25.5 24.0 25.3 27.5 28.8 29.2
C&EE 13.4 16.6 21.3 25.5 29.7 32.2 34.6 37.2 40.4 42.7
Europe 17.5 23.8 27.2 30.8 33.6 36.3 40.2 43.2 45.9 48.2
2011 2012 2013 2014 2015 2016 2017 2018 2019f 2020f
USA 16.3 18.5 20.1 22.0 25.0 27.8 30.9 34.0 37.1 39.8
Canada 24.0 29.8 32.5 35.3 38.1 43.6 45.1 49.1 50.6 52.0
North America 16.6 19.0 20.6 22.6 25.5 28.4 31.5 34.6 37.6 40.3
Australia 22.3 26.7 31.3 36.8 42.1 46.7 48.8 51.4 53.9 56.0
China 14.9 19.6 25.3 32.8 42.0 49.4 55.6 60.5 63.6 66.7
Hong Kong 6.2 9.5 12.5 21.6 25.3 29.3 35.0 43.5 51.3 59.0
India 3.0 4.7 6.4 6.6 10.8 12.0 14.5 17.4 20.7 24.5
Indonesia 0.0 3.0 4.3 7.0 11.6 14.7 18.2 20.7 23.5 26.8
Japan 20.2 20.4 21.6 23.3 25.5 27.9 31.3 35.3 38.7 41.3
Malaysia 8.9 11.1 12.5 14.5 18.8 21.7 24.4 28.6 32.7 34.6
New Zealand 15.8 17.8 21.8 26.6 32.6 36.1 40.7 46.5 50.3 54.1
Philippines 1.5 1.8 2.3 2.5 2.8 2.8 2.7 3.3 3.3 3.7
Singapore 7.3 8.8 10.1 12.5 18.4 17.1 22.9 28.4 33.5 38.8
South Korea 22.6 24.8 27.8 29.0 30.1 32.9 36.3 39.5 41.6 44.0
Taiwan 0.0 0.0 0.0 21.2 24.9 31.1 35.9 39.1 42.6 45.5
Thailand 0.7 2.5 3.6 5.4 10.2 13.1 12.1 13.3 17.8 20.3
Vietnam 3.9 5.2 5.0 5.9 7.1 8.9 10.2 11.3 11.9 12.6
Asia Pacific 15.6 18.3 21.7 26.6 32.6 37.4 42.0 46.4 49.4 52.4
Argentina 6.8 7.4 14.0 17.1 17.4 21.5 22.5 25.1 27.8 30.5
Brazil 5.3 13.9 15.8 17.4 18.5 7.9 9.5 10.7 10.3 10.2
Colombia - 3.8 4.3 4.6 5.0 6.9 9.2 13.3 18.4 25.5
Mexico 6.6 9.0 12.1 15.0 22.1 26.1 31.0 35.4 39.1 41.9
Latin America 5.7 11.8 14.0 15.9 18.1 12.3 14.8 17.1 18.1 19.5
MENA - - - - - - - - - -
Israel 17.1 17.5 20.5 25.0 27.2 30.0 32.7 33.9 34.8 35.6
South Africa 2.5 2.5 2.6 3.2 3.0 2.9 3.1 12.9 13.6 14.3
Other 7.2 6.8 6.8 8.8 8.8 9.2 10.2 18.0 18.6 19.0
GLOBAL 15.7 19.1 21.5 24.7 28.5 31.6 35.4 38.9 41.8 44.5
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