2FIVE AD SPEND TRENDS YOUNEED TO KNOW IN 2018 1.2.3.4.5.Our latest forecasts show ad spend growthaccelerating to 3.6% in 2018, up from 3.1% in 2017.However, at the economy level there is a mixedpicture: while ad spend growth is accelerating insome countries (e.g. Germany, India, the UnitedStates), in others it is slowing (e.g. China, Russia,United Kingdom).Mobile ad spend will go from strength to strengthin 2018, reaching US$121.1 billion having overtakendesktop as a share of total digital spend in 2017.2018 will be the year that digital overtakes TV,exceeding even our own previous forecasts. Digitalad spend will account for a 38.3% share of total adspend in 2018, overtaking TV at 35.5%.Digital continues to power ad spend growth and isforecast to grow globally by 12.6% in 2018, versus15% in 2017, amounting to US$220.3 billion. Video (24.5%) and social (23.5%) will be the maindrivers of growth within digital ad spend in 2018,powered by smartphone take-up and mobile-videoin particular.3 Figures in brackets show our previous forecasts from June 2017 GLOBAL 4.7 (4.8)3.1 (3.8)3.6 (4.3) NORTH AMERICA 4.8 (5.0) 2.5 (3.6) 3.1 (4.0) UNITED STATES5.0 (5.0) 2.6 (3.6) 3.2 (4.0) CANADA 0.1 (3.1)0.0 (3.1)1.1 (2.7) WESTERN EUROPE 4.1 (4.0) 3.3 (3.5) 2.6 (3.6) UNITED KINGDOM 6.1 (6.1) 3.2 (4.0) 2.9 (5.9) GERMANY 2.8 (2.3) 2.2 (2.6) 2.6 (3.0) FRANCE 0.9 (0.9) 1.7 (1.6) 2.0 (2.0) ITALY 3.5 (3.5) 0.9 (0.8) 1.9 (1.5) SPAIN6.8 (6.8)1.9 (5.0)1.4 (3.6) C&EE 7.6 (7.6) 8.3 (6.6) 7.4 (6.0) RUSSIA 11.4 (11.4)12.9 (9.8)10.4 (7.8) ASIA-PACIFIC 4.6 (4.7) 3.5 (4.3) 4.2 (4.6) AUSTRALIA 4.5 (4.8) 2.7 (4.1) 2.9 (4.8) CHINA 7.4 (7.4) 6.0 (6.0) 5.4 (5.4) INDIA 11.9 (11.9)9.6 (13.0)12.5 (12.2) JAPAN1.9 (1.9)1.0 (1.7)1.6 (1.7) LATIN AMERICA 9.1 (11.9) 8.1 (7.0) 8.8 (8.9) BRAZIL 5.4 (5.4) 2.1 (2.1) 5.0 (5.0) 2016a2017f2018f4 AD SPEND GROWTH IS FORECAST GLOBALLY ANDIN KEY MARKETS IN 2018 Global ad spend growth is forecast toaccelerate to 3.6% in 2018, up from 3.1% in2017. This amounts to global ad spend ofUS$589.5 billion in 2018. Events such as theWinter Olympics & Paralympics, the FIFAWorld Cup in Russia and US Congressionalelections will help to drive this growth.The United States remains the number 1contributor to incremental global ad spendin 2018, contributing US$6.8 billion (33.4%)of the total US$20.3 billion increase in newad dollars. US ad spend is projected to growby 3.2% in 2018 (up from 2.6% in 2017) to hitUS$216.9 billion¡ª37% of global ad spend.However, the total market forecast hasbeen revised down from the 4.0% forecastin the June 2017 report following signs ofa softening TV market in the back end of2017 affecting the global growth forecast for2018. India is forecast to grow by 12.5% in 2018,up from 9.6% in 2017, refecting its solid economic growth trajectory. Digital mediaspend is forecast to increase by 30% in 2018with 43.6% growth in mobile spend, whichwill account for 47% of total digital spendin 2018. The advertising market in India isforecast to grow by a further 12.5% in 2019.Germany is projected to grow by 2.6%in 2018 to reach € 16.2 billion¡ªa slightacceleration and increase in momentumon 2017 (2.2%). With the economy stableand consumer sentiment high, the market ispredicted to continue on a positive trend into2019 and grow by 3.0%.Japan remains a leading contributor toglobal advertising spend in 2018, projectedto grow by 1.6%¡ªan increase on 2017, whengrowth stood at 1%. The Japanese economyis undergoing gradual and stable growthwhich is expected to continue and will seethe ad spend market pick up to 2.1% growthin 2019.¡£¡£¡£¡£¡£¡£