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NEWS26 November 2012

Global ad spend to rise by 4% in 2012 and 2013

Financials UK

GLOBAL — Advertising spend will rise by around 4% globally this year and next, but the difficult financial climate is still weighing on the industry, according to Warc’s latest international ad forecast.

The body’s International Ad Forecast study, which covers twelve countries, predicts that ad revenues should expand by 4.3% worldwide in 2012 and 4% in 2013 at current prices. The figures are slightly down on previous estimations owing to the “continued uncertainty about the global economy and future business conditions.”

In the latest estimates only Brazil is performing better than expected, buoyed by the prospect of hosting both the 2014 World Cup and the 2016 Olympic Games. Fellow BRIC nations India and China have taken the biggest hits on forecasts due to higher inflation rates, though they are still expected to be amongst the fastest-growing ad markets in 2013.

The American ad industry is anticipated to expand by 2.5% in 2013, a slowdown “primarily linked to the lack of major events”, while the Eurozone’s growth is set to be “limited due to fears of further economic recession.”

By media channel, the internet is expected to enjoy annual growth of around 14% during the forecast period, while cinema, TV, and out of home all benefit from consistent gains topping 3% per year. In contrast, conditions will remain difficult for print, as newspapers and magazines continue to witness declining advertising sales at the global level.

Suzy Young, Warc’s data editor, said: “The global ad market has been boosted this year by quadrennial events. namely the Olympics, the US presidential election and, to a lesser extent, Euro 2012. Next year will suffer by comparison, with advertisers having fewer incentives to spend when the underlying mood is generally one of caution.”

@RESEARCH LIVE

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