The FIFA World Cup is set to boost global ad spends by an estimated $1.5 billion this year. With the event targeting television audiences and consumers with a high interest in news media, the global advertising market is set to grow 5.4 per cent in 2014, up from 3.9 per cent in 2013.
According to a forecast by ZenithOptimedia, a media buying firm, growth is expected to continue improving over the next two years, reaching 5.7 per cent in 2015, and 6.1 per cent in 2016, driven by economic recovery.
“TV would benefit the most, but World Cup advertisers will spend more of their budgets on internet advertising, with advertisers more active on social media than during any previous sporting event,” the report indicates.
“We forecast mobile advertising to grow by an average of 49 per cent a year between 2013 and 2016, driven by the rapid adoption of smart phones and tablets, and the subsequent explosion of mobile search and media consumption. By contrast, we forecast desktop internet advertising to grow at an average of 9 per cent a year,” the agency has said.
It has forecast that mobile will contribute 38 per cent of all extra ad spends between 2013 and 2016, ahead of television (31 per cent) and desktop internet (30 per cent).
The World Cup is also expected to provide a big boost to television in June and July. But internet advertising will grow faster, at 16.2 per cent a year, the report indicated.
“The World Cup is a great opportunity for advertisers to reach passionate and involved audiences worldwide. While television will remain central to how fans experience the competition, advertisers are using digital media more than ever to help shape this experience,” noted Steve King, ZenithOptimedia’s CEO, Worldwide, in the report.