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NEWS18 June 2012

Adspend to benefit from Olympics halo effect, says Warc

Asia Pacific Europe Financials Latin America Middle East and Africa North America UK

GLOBAL— Advertising spend will show slow growth of 4.8% at current prices in 2012, inflated by the quadrennial effect from extra political and Olympic spend, according to Warc’s latest international ad forecast.

The advertising intelligence body said the increase “masks the underlying caution of marketers due to considerable economic uncertainty.” The buoyancy can be largely attributed to predicted growth in the US market of 4.1% and raised expenditures throughout the BRIC economies.

It is the emerging markets that are expected to record the strongest growth in 2012. China is predicted to increase expenditure by 15.5%, followed by Russia ( 14%), India ( 9.3%) and Brazil ( 8.9%).

However, weakness in the current economic climate could mean that only China and Russia maintain their positions as the fastest-growing markets. The other two might see projections fall – Brazil could slow to 3.4% and India to just 1.1%. Only the troubled European countries are forecast to achieve lower growth than this.

Across all 12 markets, adspend is expected to increase 2.1% in real terms in 2012.

Forecast adspend growth in 2012

CountryCurrent % change year-on-yearConstant % change year-on-year
Australia2.30.1
Brazil8.93.4
Canada4.52.4
China15.511.3
France0.6-1.6
Germany0.5-1.6
India9.31.1
Italy-3.5-6.3
Japan2.72.7
Russia14.08.2
UK3.81.0
US4.11.8

Forecast growth calculated in local currency.
Source: www.warc.com/data

@RESEARCH LIVE

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