Global advertisers will increase adspend by 4.3% in 2020 but commercial audiences will shrink by 1.6%

Demand for mass audiences continues to rise, but supply is falling as consumers turn to non-commercial media

Media inflation has exceeded adspend growth throughout the decade

US-China trade war will offset the gains from sport and elections in 2020

Advertisers will increase their global ad expenditure by 4.3% in 2020, but the commercial audiences supplied by media owners will shrink by 1.6%, fuelling a 6.1% increase in media prices, according to Zenith’s Advertising Expenditure Forecasts, published today.

Demand for advertising has grown consistently throughout this decade. To sustain market share, large brands need to maintain brand awareness among buyers and potential buyers, which requires regular, brand-building campaigns with mass reach. The same goes for smaller brands looking to grow their business. Meanwhile small businesses, which may not have advertised at all previously, have embraced targeted advertising on digital platforms and injected new demand into the market. Advertising expenditure has grown by 5.1% on average since 2010.

However, traditional mass audiences are shrinking: first print, and now television in key markets. Many lost audiences are replacing television viewing with non-commercial video like Netflix, Amazon Prime Video, HBO, and eventually Disney+, reducing available audiences and creating fragmentation. The use of adblockers means that some audiences have low exposure to digital advertising. This rising demand and falling supply is increasing prices rapidly. The supply of commercial audiences has shrunk by 1.3% a year on average since 2010, according to exclusive Zenith research, while media inflation has averaged 6.5% a year.

“The days when we could find audiences all in one place are long gone. Now, however, technology empowers us to find them wherever they are, online or offline, and win back value for our clients through efficiency and effectiveness – by ensuring that we target and reach consumers with the right message at the right point in the consumer journey,” said Matt James, Global Brand President at Zenith.

US-China trade war to counter the quadrennial effect in 2020

Next year is a ‘quadrennial’ year, benefitting from the Summer Olympics, UEFA Euro 2020 and US Presidential elections, which occur every four years. These ad expenditure stimulants are expected to add US$7.5bn into the global ad market. In normal circumstances, adspend growth in 2020 would be comfortably above this year’s growth rate. However, forecasted 4.3% growth next year is barely above 2019’s estimated 4.2% growth. The US-China trade dispute is disrupting economies across the world, interrupting supply chains and rerouting trade and investment. This is reducing growth and raising uncertainty, making advertisers more cautious about budgeting. Zenith estimates this economic headwind will cost the global ad market 1.1 percentage points of growth in 2020. Without it, the market would be up by 5.4%.

India to take over as second-biggest contributor to ad growth in mid-2020s

Despite the trade dispute, the US and China are still leading global adspend growth. The US ad market is forecast to grow by US$39.1bn between 2019 and 2022, while China grows by US$10.3bn. Together they will account for 56% of all growth in ad expenditure over the next three years. China’s growth rate is slowing, however, as its ad market matures. After years of being a production-led, high-growth economy, China is transitioning into a consumer-led developed economy, and its ad market is becoming more similar to other developed economies. Chinese adspend is forecast to grow 4.1% in 2020, compared to 4.8% in the US.

The third-biggest contributor is India, which will grow by US$4.3bn between 2019 and 2022. Indian adspend is steadily increasing by double-digit rates, with growth forecast at 12.4% in 2020, 12.9% in 2021 and 12.6% in 2022. The Indian ad market has great potential for long-term growth, contributing just 0.3% of GDP this year compared to 0.6% in China and 0.7% for the world as a whole. At current development rates, by the mid-2020s India will overtake China as the main source of growth in Asia Pacific, and the second-biggest in the world.

Online video and social media continue to lead growth

Online video and social media will remain the fastest-growing channels between 2019 and 2022, growing respectively by 16.6% and 13.8% a year on average, thanks mainly to continued increases in consumption on smartphones. Cinema will be in third place with 11.5% annual growth, driven by surging demand in China, but will still only account for 0.9% of global adspend in 2022.

Television will record zero growth over the next three years, as price inflation counterbalances the decline in global audiences. Prices are rising for printed newspapers and magazines as well, but not quickly enough to compensate for the persistent and rapid decline in readership. Newspaper adspend will shrink by 4.5% a year to 2022, and magazines will shrink by 8.1% a year.

“As geopolitical tensions wipe out most of the expected gains from sport and elections, 2020 will be a disappointing quadrennial year for the ad market,” said Jonathan Barnard, Zenith’s Head of Forecasting. “If the trade war is settled, we are more confident for 2021, forecasting 4.5% growth in global adspend despite the absence of the quadrennial events.”

Nominations for the 77th Golden Globes Have Been Announced

The Hollywood Foreign Press Association (HFPA) has announced the nominees for the 77th Annual Golden Globe Awards from The Beverly Hilton in Beverly Hills, California.  The three-hour telecast hosted by Ricky Gervais will air live on NBC coast to coast Sunday, January 5, 2020, at 8:00 p.m. EST/5:00 p.m. PST.

Tim Allen, Dakota Fanning and Susan Kelechi Watson joined HFPA president Lorenzo Soria, the previously announced Golden Globe Ambassadors Dylan and Paris Brosnan, and Executive Producer and Executive VP of Television at dick clark productions, Barry Adelman, in announcing the nominees in 25 categories spanning motion picture and television.

In addition to these categories, the 2020 Golden Globes will honor Tom Hanks with the Cecil B. deMille Award, and Ellen DeGeneres with the newly created Carol Burnett Award.

The nominees of the 77th Golden Globes are:

Best Performance by an Actor in a Limited Series or Motion Picture Made for Television

Independent media agency, Empire is proud to announce that they have exponentially expanded their market coverage and now offer media buying services across multiple continents.

With three offices strategically placed in London, Dubai and Cape Town, Empire has grown from servicing clients across 15 countries at the beginning of 2019, to more than 90 countries as of today, with their coverage set to grow dramatically over the coming months.

Having launched in Dubai in 2012, Empire has expanded its global reach to service the growing demands of their Middle Eastern and worldwide client base and can now plan, buy and implement advertising campaigns across Europe, the Middle East, Africa, the US and Asia.

Marwan Al Hashimi, Founder of Empire said: “Launching Empire in Dubai has taught us that nothing is impossible and to always strive for the best. Our roots have been instrumental to our company culture and business philosophy, and we have learnt to implement efficiency, speed and high levels of customer service in order to grow our agency. This promises our clients highly effective media usage, strong ROI and unprecedented service levels, and we’re delighted to now be able to offer our services to a wider choice of territories and look forward to rolling out client campaigns globally.”

Empire have recently executed a media buying campaign for Epson across Europe, Africa and South Africa.

Apple celebrates the best apps and games of 2019

Apple revealed the best apps and games and the most powerful trends that drove app culture in 2019. Apps help simplify our lives and express our creativity, connect us to friends, family and the world beyond, and of course, have fun. In 2019, apps made their mark by reflecting the zeitgeist of our society and sitting at the nexus of digital and pop culture.

“Developers around the world inspire us all with innovative apps that have the power to influence culture and change our lives, and this year that is as true as ever. The 2019 App Store Best Apps and Games winners reflect our global desire for connection, creativity and fun,” said Phil Schiller, Apple’s senior vice president of Worldwide Marketing. “We are excited to announce such a diverse group of 2019 App Store winners, showing that great design and creativity comes from developers large and small, and from every corner of the world. We congratulate all the winners and thank them for making 2019 the best year yet for the App Store.”

Best Apps of 2019

iPhone App of the Year: Spectre Camera (Lux Optics)

This AI-powered app leverages a dizzying amount of tech to let anyone take stunning long-exposure photos.

iPad App of the Year: Flow by Moleskine (Moleskine)

Draw and sketch in this elegant digital notebook app, whose graphite pencils, chisel-tipped markers and more have been meticulously tuned to mimic the real thing.

Mac App of the Year: Affinity Publisher (Serif Labs)

With its elegant user experience and remarkably reasonable price point, Affinity Publisher makes pro-level design accessible to everyone, whether you’re creating a photo-rich coffee table book or a flyer for your second grader’s play.

Apple TV App of the Year: The Explorers (The Explorers Network)

This groundbreaking app was designed to support the community of explorers, scientists and artists working toward a common goal: To create a comprehensive “visual inventory” of the natural world through photo and video.

App Trend of 2019: Storytelling Simplified

In 2019, a groundswell of apps helped us fill the proverbial blank page with our memories, dreams, images, and voices—and did so with more power and personality than ever. With apps like Anchor (Anchor FM), Unfold (Unfold Creative), Steller (Expedition Travel Advisor), Over (Over, Inc) and Wattpad (Wattpad Corp), anyone can express themselves through moving podcasts, one-of-a-kind novels, and true-to-life photo collages in an easier way than ever before.

Best Games of 2019

iPhone Game of the Year: “Sky: Children of the Light” (thatgamecompany)

iPad Game of the Year: “Hyper Light Drifter” (Abylight S.L.)

A dazzling, action-packed reimagining of classic 16-bit adventure games, “Hyper Light Drifter” blends dreamlike exploration with fight-for-your-life survival.

Fly across sweeping landscapes to help celestial beings find their way back to the heavens in this groundbreaking social quest.

Mac Game of the Year: “GRIS” (Devolver / Nomada Studio)

This spectacularly satisfying puzzle-platformer is a soul-stirring work of digital art — one that explores hope, grief and the triumph of piecing a life back together after tragic loss.

Apple TV Game of the Year: “Wonder Boy: The Dragon’s Trap” (DotEmu)

Developed by Lizardcube with the cooperation of series creator Ryuichi Nishizawa, “Wonder Boy” — the beloved game from the ’80s, in which a lone half-lizard adventurer sets off on the challenge of a lifetime — gets a reboot with hand-drawn animation and a re-orchestrated soundtrack.

Game Trend of 2019: Blockbusters Reimagined 

This year, game developers worldwide burst onto iOS with a wave of world-renowned brands, all featuring leading-edge technology, bold design and innovative features that delivered a level of depth and quality never thought possible on mobile. Hits like “Mario Kart Tour” (Nintendo) “Minecraft Earth” (Mojang), “Pokémon Masters” (DeNA Co), “Assassin’s Creed Rebellion” (Ubisoft), “Gears POP!” (Microsoft Corporation), “The Elder Scrolls: Blades” (Bethesda) and “Call of Duty: Mobile” (Activision Publishing) aren’t mere remakes or tributes — they are original releases that breathed new life into the most beloved franchises in gaming history.

Apple Arcade Game of the Year: “Sayonara Wild Hearts” (Simogo)

In 2019, Apple expanded the App Store with the introduction of an all-new tab for Apple Arcade, a groundbreaking game subscription service without ads or in-app purchases. While every one of the 100+ games in Apple Arcade offers gamers something unique, there is one game that stands out even within this collection of outstanding titles, making it the Apple Arcade Game of the Year. “Sayonara Wild Hearts,” developed by Simogo and published by Annapurna Interactive, is a hopeful, gorgeous and unique game — the kind that gets your adrenaline pumping and makes your spirit soar. Prepare to race motorcycles, wield swords and break hearts at 200 mph.

High income earners are more likely to support the new sin tax

As the UAE prepares for its new sugar tax to take effect soon, YouGov’s latest research reveals that the majority (55%) of UAE residents support its implementation, while just one in five (20%) oppose it.

The survey shows that 66% of high income earners (those earning AED 40,000+ per month) support the tax whereas support amongst those earning AED 5,000 or less per month is considerably lower at 48%.  Support for the new sin tax amongst young adults between 18 and 24 years was lower at 47% compared to 56% amongst older age groups. Amongst the genders, a higher number of men than women favour its implementation (57% vs 50%).

Although the majority of surveyed respondents (61%) were aware of this initiative by the government, two in five (39%) did not know about it.

Of those who support the tax, more than three-quarters (77%) also agree with the idea of a complete ban on the sale of high sugar drinks in the country. People aged 40 and above tend to favour a ban more than young adults between the ages of 18-24 years (84% vs 64%).

While a majority say the increased prices will change their behaviour by either reducing (41%) or stopping (13%) their consumption of sugary drinks, close to half (46%) say their intake will remain unaffected.

The new tax aims at reducing the consumption of specific goods typically harmful to either human health or the environment. Around two-thirds believe it will help to reduce the intake of unhealthy foods and beverages (67%), check sugar addiction (66%) and prevent chronic diseases linked to sugar (65%). To that end, more than seven in ten (73%) feel greater transparency about a product’s contents will further help consumers make healthy choices.

Apart from the sugar tax, more than half of UAE residents feel additional initiatives by the Government to encourage walking (59%) and systemizing nutrition standards for children’s food in schools (55%) will benefit public health. Many also think health initiatives such as marathons (49%) and community weight loss challenges (48%) are also likely to help people.

Data collected online by YouGov Omnibus among 1002 respondents in the UAE between 23rd and 30th October 2019 using YouGov’s panel of over 6 million people worldwide. Data is representative of the adult online population in the co

Instagram is announcing two updates as part of our ongoing work to keep young people safe:

Starting today, we will require new users to let us know their age before they can sign up for Instagram.

Those under 13 will not be allowed to join, per our longstanding policy that you must be 13 to have an Instagram account.

If you’ve connected your Facebook account to your Instagram account, we will add the date of birth that’s on your Facebook profile. 

Editing your date of birth on Facebook will also change it on Instagram. If you don’t have a Facebook account or if you have not connected your accounts, you can add or edit your birthday directly on Instagram.

Historically, we didn’t require people to tell us their age because we wanted Instagram to be a place where everyone can express themselves fully - irrespective of their identity. In the spirit of that decision, we won't show people's birthday information to others in the community.

In the coming weeks, we’ll be rolling out a new setting in direct messages that will allow people to choose to no longer receive messages or be added to chat groups by people they don’t follow.

Understanding how old people are on Instagram is a central part of the work we’re doing to keep young people safe. It will allow us to create age-appropriate experiences for our youngest community members, while living up to our longstanding rule to ensure people who are underage do not have access to Instagram.

The safety of young people has always been central to our decision-making, but we are increasingly doing more. Over the coming months, we’ll be exploring additional changes using birthday information; for example by recommending young people enable more private settings.

Kantar transaction completed; leverage reduced to lower end of target range; share buyback to commence shortly

WPP announces that it has completed the transaction to sell 60% of Kantar, its global data, research, consulting and analytics business, to Bain Capital Private Equity, with respect to approximately 90% of the Kantar business, and that the proportionate transaction proceeds have been received.

Following final completion in respect of the remaining Kantar business in the first half of 2020, total aggregate net proceeds after transaction costs, tax and WPP’s continuing investment in 40% of the equity of Kantar are expected to be approximately $3.1bn (approximately £2.4bn1).

The Kantar transaction was originally announced on 12 July 2019 and further details were included in a circular sent to WPP’s shareholders on 7 October 2019. As previously set out, WPP intends to retain approximately 60% of the net proceeds (approximately $1.9bn or £1.4bn) to reduce debt to the low end of the target leverage range of 1.5 – 1.75x average net debt/EBITDA2 for 2020, and to return approximately 40% of the net proceeds (approximately $1.2bn or £950m) to shareholders. WPP today announces that the return to shareholders will be executed via a share repurchase programme, which we expect to commence shortly, with an initial tranche of approximately £250m, of the total £950m, planned to be completed by March 2020.

Mark Read, Chief Executive Officer, WPP, said:

“The completion of the Kantar transaction, earlier than anticipated, achieves the objective we set out in December 2018 to strengthen our balance sheet, and substantially completes our disposal programme. It is a major step in simplifying and focusing WPP, and we intend to return around 8% of our share capital to shareholders through a buyback programme. The partnership with Bain Capital means that we will participate in the future growth of Kantar as well as allowing our clients to continue to benefit from Kantar’s services.”

LinkedIn, the world’s largest professional network, today announced its inaugural LinkedIn Top Voices list for the GCC region for 2019. The list spotlights members whose posts, articles, videos and comments are driving engaging conversations across their industries and countries. Through sharing their unique insights and experiences, these professionals spark conversations that ensure all members of the professional network are better informed.

Currently in its fifth year, LinkedIn Top Voices is an annual global list that uncovers and celebrates members who have made the biggest impact through their online contribution on the platform.

So, who made the cut in 2019 and why? To find standout voices, LinkedIn leveraged a combination of data analytics and editorial signals. LinkedIn’s in-house editors, Lynn Chouman and Salma Altantawy, screened levels of engagement among professionals sharing insights in their area of expertise and examined the kind of conversations – measured by engagement, including comments and re-shares – their original content generated. The list placed high emphasis on quality and diversity, reflecting the world of work today. To ensure fairness and transparency, all LinkedIn Lists exclude LinkedIn and Microsoft employees from consideration.

Salma Altantawy, MENA News Editor at LinkedIn, said: “The GCC region’s Top Voices 2019 list allows us to acknowledge a group of professionals who reflect today’s workplaces that emphasize diversity of voices and topics. At LinkedIn, we endeavor to provide a platform that empowers professionals to share their expertise and opinions, inspiring conversations that make a difference and have a high impact quotient.

“For the GCC Top Voices 2019 list, we looked at content in terms of relevance, timeliness, quality of writing, and depth of insight. We sincerely hope this selection encourages other members to turn their own ideas into powerful conversations. There’s a vast and diverse social and professional community out there ready to give their own perspectives – all it takes to be the next Top Voice is to put yourself in that space and connect and empower one another.”

This year’s top voices shared with LinkedIn what they talk about, their brainstorming process, and the best career advice they have received.

The Top Voices list for 2019 in the GCC region included:

Alain Bejjani, Chief Executive Officer, Majid Al Futtaim Holding

Dietmar Siersdorfer, Chief Executive Officer, Siemens Middle East

Fatima Alloghani, Head of Expo Academy & Emiratization, Expo 2020 Dubai

Francisco Miguel Sousa, Managing Director, Talabat

Haitham Mattar, Senior Advisor, Saudi Commission for Tourism and National Heritage

Heba Sayed, Marketing Manager, IBM Middle East & Africa

Mohamed Alaydaroos, Associate Sustainability Pavilion, Expo 2020 Dubai

Nayla Al Khaja, Chief Executive Officer, Nayla Al Khaja Films

Raja Al Mazrouei, Executive Vice President, DIFC, FinTech Hive

Rohit Ramachandran, Chief Executive Officer, Jazeera Airways

In driving greater engagement and facilitating further interaction among professional communities across the network, LinkedIn Top Voices for the GCC region is seeking to diversify the manner in which people use professional networks while consistently encouraging original industry-focused content from across the region.

TBWA\RAAD has announced today the appointment of Bruno Bomediano to occupy the role of Executive Creative Director effective as of December 1st, replacing Manuel Bordé, who has moved to New York to lead the creative department at Geometry North America, as their regional Executive Creative Director.

Bruno will be responsible for the agency’s creative output, overseeing and approving all of its campaigns, leading and guiding its creative workforce.

Walid Kanaan, Chief Creative Officer at TBWA\RAAD said: “I would like to welcome Bruno on board. I am enthusiastic about this new chapter that the agency is witnessing and I’m looking forward to seeing the creative outcome under Bruno’s leadership.

I also want to wish Manuel all the success on his next journey. I am confident that he will continue to be the generous, inspiring and bright award-winning leader that he was with us.”

Speaking of his appointment, Bruno Bomediano said: “I am extremely excited and ready for this new challenge, and I’m certain that the experience will be inspiring and enriching. Looking forward to working with the amazingly talented teams at one of the region’s most awarded and recognized agency and number one network in the world.”

Bruno has more than 18 years of experience in advertising. He started his creative journey in Sao Paulo, where he has worked for some of the country’s most reputable agencies, such as Fallon, Leo Burnett, Lew Lara TBWA, Y&R and Talent Marcel. 

Bruno relocated to Dubai in 2014, appointed Head of Art for Leo Burnett, and promoted later on to the role of Creative Director. He moved to Horizon FCB in 2017, to occupy the position of Executive Creative Director, transforming the creative reputation of the agency and winning several pitches for famous brands. 

Bruno has collected numerous trophies and metals from the industry’s most prestigious festivals and award shows during the course of his career in Brazil and the UAE, including multiple Grand Prix at the Cannes Lions and the Dubai Lynx, Golds and other metals at the LIA, One Show, El Ojo, among others. 

Today, Instagram is announcing two updates as part of our ongoing work to keep young people safe:

1.Starting today, we will require new users to let us know their age before they can sign up for Instagram. 

oThose under 13 will not be allowed to join, per our longstanding policy that you must be 13 to have an Instagram account. 

oIf you’ve connected your Facebook account to your Instagram account, we will add the date of birth that’s on your Facebook profile. 

oEditing your date of birth on Facebook will also change it on Instagram. If you don’t have a Facebook account or if you have not connected your accounts, you can add or edit your birthday directly on Instagram.

oHistorically, we didn’t require people to tell us their age because we wanted Instagram to be a place where everyone can express themselves fully - irrespective of their identity. In the spirit of that decision, we won't show people's birthday information to others in the community.

2.In the coming weeks, we’ll be rolling out a new setting in direct messages that will allow people to choose to no longer receive messages or be added to chat groups by people they don’t follow.

Understanding how old people are on Instagram is a central part of the work we’re doing to keep young people safe. It will allow us to create age-appropriate experiences for our youngest community members, while living up to our longstanding rule to ensure people who are underage do not have access to Instagram. 

The safety of young people has always been central to our decision-making, but we are increasingly doing more. Over the coming months, we’ll be exploring additional changes using birthday information; for example by recommending young people enable more private settings.