Sunday November 17, 2019
Home Lead Story Global ad Inv...

Global ad Investment to Grow 6% to $656 bn in 2020

Internet is the fastest growing ad medium in each sector except technology and electronics, where out of home (OOH) is set to rise fastest at 11.4 per cent, according to the report

0
//
Social Media
Social Media use was measured by asking participants how much time they spent on social networking sites on a typical day. Pixabay

Driven by rising spend on Google, Facebook and Amazon, global ad investment will grow six per cent to $656 billion in 2020, according to a forecast by market research firm WARC.

The report, however, also warns of the possibility of a global recession next year.

“Weak macroeconomic indices, waning business confidence and rising geopolitical tensions have increased the possibility of a recession in 2020,” James McDonald, Managing Editor, WARC Data, said in a statement.

“Within this climate, our forecast of six percent growth in global advertising investment may seem optimistic, but these projections are in line with those from the IMF (International Monetary Fund) and Euromonitor for GDP and consumer spend, respectively,” McDonald added.

With global growth of six per cent, 2020 is expected to see a marked uptick from the 2.5 per cent growth in 2019 but is down on the 7.3 per cent rise recorded last year, according to the report titled “WARC’s Global Advertising Trends”.

Internet formats will account for over half of global ad investment for the first time in 2020, and social media, search and online video – the largest of these – are effectively shorthand for Facebook, Google and (Alphabet-owned) YouTube.

fake, media, behaviour, artificial intelligence
Social Media Icons. VOA

Meanwhile, Amazon is becoming more popular with advertisers, with the e-commerce giant’s share of all ad dollars rising to 2.5 per cent. By contrast, Alphabet will grow to 23.1 per cent, and Facebook will grow to 12.9 per cent.

Advertiser investment beyond these three players has been flat or falling since 2012, said the report.

The researchers found that advertisement spend is set to rise across all 19 categories measured for the report.

Also Read: Mother’s Exposure to Some Chemicals During Pregnancy Linked to Lower IQ in Kids: Study

Eight product categories set to increase advertising investment ahead of the global rate next year are financial services, household & domestic, transport & tourism, telecoms & utilities, technology & electronics, alcoholic drinks, automotive and soft drinks.

Internet is the fastest growing ad medium in each sector except technology and electronics, where out of home (OOH) is set to rise fastest at 11.4 per cent, according to the report. (IANS)

Next Story

Reasons For Bigger Houses In America

Here's why houses are getting bigger in America

0
Houses
Americans prefer houses that have big and open spaces in them. Pixabay

BY DORA MEKOUAR

Americans have long been drawn to big, open spaces, so perhaps it’s no surprise that houses built in the United States are among the most expansive on the planet.

And they keep getting bigger.

The size of the average house has more than doubled since the 1950s. In 2019, the average size of a new single-family home was 240 square meters (2,584 square feet), according to the National Association of Homebuilders.

Deeply held feelings about one’s home may be rooted in America’s homesteading, pioneering past.

“The appeal of the house for Americans, going back into the 20th century, was that it signified autonomy. You know, every home is a castle,” says Louis Hyman, an economic historian and assistant professor at Cornell University. “So, it has these echoes of signifying independence and achievement.”

The federal government has pushed the idea that a nation of homeowners is ideal.

The 1934 establishment of the Federal Housing Administration revolutionized home ownership. By creating the financial mortgaging system that Americans still use today, the FHA made home buying more accessible for millions of people. At the time, most Americans rented. Homeownership stood at 40% in 1934. By 2001, the figure had risen to 68%.

In the 1940s, President Franklin D. Roosevelt equated homeownership with citizenship, saying that a “nation of homeowners, of people who own a real share in their own land, is unconquerable.”

Today, the homeownership rate in the United States stands at around 65%.

Houses
The average newly built house is now twice as big as the average new home in 1945. Pixabay

The ability to invest in their homes has helped mask economic stagnation for many Americans. Although unemployment is near a record low, real wages — the number of goods and services that can be bought with money earned — haven’t budged in decades for U.S. workers.

“As Americans find that their wages are stagnating after the 1970s, they’re able to make money by investing in houses,” Hyman says. “The houses become a way for average Americans to get financial leverage, which can multiply their returns. There’s no other way for Americans to get access to financial leverage outside of houses. You can’t do it in the stock market if you’re just a normal person, and so this is a way to basically speculate in housing.”

For some Americans, owning a big home is a status symbol, physical proof that they’ve succeeded in life.

“This kind of classical example of the big suburban home has been a very powerful idea for many, many decades now,” says architectural historian William Richards. “People sometimes want specific rooms that have specific functions —a mud room; everybody gets their own bedroom; there’s no bunking up; a dedicated laundry room.”

And spacious houses are more financially attainable than they used to be.

Houses
For many Americans, a large home is not only a status symbol, but also an investment. Pixabay

“In the design and construction, there are greater efficiencies now for all sorts of reasons so that it’s less expensive to build a bigger house now,” Richards says.

But do bigger houses, sometimes called McMansions, make people happier? Not according to a recent paper that Clément Bellet, now an adjunct professor at INSEAD, a European business school, wrote as a postdoctoral fellow.

“Despite a major upscaling of single-family houses since 1980, house satisfaction has remained steady in American suburbs,” Bellet writes in the report.

Also Read- Usage of Anti-Inflammatory Drugs to Curb Symptoms of Depression, still Controversial

People living in larger houses, however, do tend to be more satisfied with their property, according to Bellet, but that satisfaction plunges when even more massive houses are built nearby. (VOA)