Global advertising spend to hit $540 billion in 2015

Social media has given franchises a new, low-cost tool for advertising, but the digital age is still driving marketing budgets to new heights.

A recent report from global media network Carat showed marketers are forecasted to spend $540 billion on advertising around the world in 2015 – a 4.6 percent increase from 2014. Much of this rise can be attributed to digital media channels.

“Powered by a dramatic rise in mobile ad spending globally of 50 percent and online video of 21.1 percent predicted in 2015, Carat forecasts that digital will, for the first time, account for more than a quarter of all advertising spend in 2016 with a market share of 25.9 percent,” the organization stated.

As pointed out by Advertising Age, the increase in marketing spend is even more impressive when the lack of “tent-pole” media events in 2015 is considered. Marketing budgets are still rising despite the lack of major media events like the Winter Olympics and FIFA World Cup.

Meanwhile, as a barometer of economic stability around the world, Carat’s report paints a positive picture. The organization reported all regions – from North America to Asia Pacific - reported positive growth in 2014. Additionally, regional confidence is predicted to remain strong in all key markets barring Russia.

“North America continues to grow at a solid pace of 4.5 percent in 2015 and 4.6 percent in 2016, with programmatic spending in the U.S. predicted to grow by 137 percent, reaching spend levels of $10billion,” Carat stated.