From the OAAA Outlook Newsletter
OOH revenue in the United States is expected to continue its steady growth through 2019 and 2020, according to the US Media Forecast Report recently released by GroupM, WPP’s media investment group.
Overall ad spend in the US grew by 9.5 percent in 2018. The group forecasts 5.8 percent growth this year and 4.8 percent in 2020.
Digital advertising is driving growth; the space saw a 23 percent increase in 2018. GroupM predicts digital growth will decelerate with a 15 percent increase in 2019 and 16 percent in 2020.
OOH will remain durable compared to other traditional media types, according to the report. In 2019, US OOH is expected to grow 2.5 percent. In 2020, growth is predicted to slow at 1.3 percent.
Dentsu Aegis Network has downgraded its global forecast for 2019. Based on data from 59 international markets, the group now predicts growth of 3.6 percent to $609.9 billion, down from 3.8 percent in January. Slower growth is attributed to declines in ad revenue in China and international trade tensions.
Global OOH will see continued growth and an upwards revision from January to 4.3 percent in 2019 to reach 6.3 percent share.
Digital continues to power ad spend growth and is forecast to grow 11.5 percent in 2019 to reach $249.7 billion and 41.8 percent of global share. Growth is steady into 2020 putting digital’s share of ad spend at nearly 45 percent by the end of the year.
Mobile is the fastest growing platform within digital and is forecast to grow 21.4 percent in 2019. Powering this growth is the increasing consumption of video on mobile – from Instagram Stories, TikTok and Snapchat to YouTube and VOD – with online video in general set to grow 20.5 percent in 2019.
TV ad-spend is forecast to shrink slightly in 2019 (-0.1%) with a return to modest growth in 2020 of 0.6 percent. Into 2020 growth will be driven by more dynamic TV opportunities and innovation as the penetration of smart TVs continues.
The decline of traditional print has accelerated from January’s forecast (Newspapers -7.7% and Magazines -7.4%).
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