According to an adjusted ZenithOptimedia forecast for global ad expenditure, it is now forecast to grow by 4.2% in 2011, down from the 4.6% forecast in December as a result of the political turmoil in the Middle East and the devastating earthquake in Japan. In Egypt there was almost no advertising on television during the revolution, notes the report, and Japan broadcasters replaced almost all commercial ad slots with public-service announcements for weeks after the earthquake.
The report says that some of the missing advertising is expected to reappear later in the year, followed by strong growth in these markets in 2012. Japan is forecast to shrink 4.1% this year then grow 4.6% next year, while Egypt follows this year's 20.0% drop with 12.1% recovery in 2012.
Overall, the report shows a 5.8% growth in global ad expenditure in 2012, up from our prediction of 5.2% growth last December, partly the result of the rebound in Japan and the Middle East, and partly to further strengthening in Western and Central & Eastern Europe.
The growth rate in North America is expected to grow by an average of 3.1% a year between 2010 and 2013, and Western Europe to grow by 3.5%. Developing markets, defined as everywhere outside North America, Western Europe and Japan, will increase their share of the global ad market from 30.9% in 2010 to 35.1% in 2013.
There are now two ‘developing' markets in the world's top ten ad markets, and there will be three in 2013. China will overtake Germany to become the world's third-largest ad market in 2011, and stay at that position throughout the forecast period.
Top Ten Ad Markets (US$ million, current prices; Currency conversion at 2009 average rates) | |||||
2010 | Adspend | 2013 | Adspend | ||
1 | USA | 151,519 | 1 | USA | 165,903 |
2 | Japan | 43,297 | 2 | Japan | 44,173 |
3 | Germany | 24,535 | 3 | China | 33,999 |
4 | China | 23,208 | 4 | Germany | 26,361 |
5 | UK | 18,042 | 5 | UK | 19,970 |
6 | France | 13,181 | 6 | Brazil | 16,268 |
7 | Brazil | 12,950 | 7 | Russia | 14,751 |
8 | Italy | 10,801 | 8 | France | 14,362 |
9 | Australia | 9,705 | 9 | Italy | 11,738 |
10 | Canada | 8,891 | 10 | Australia | 11,167 |
Source: ZenithOptimedia |
Major Media Advertising Expenditure By Region (newspapers, magazines, television, radio, cinema, outdoor, internet; US$ million, current prices; Currency conversion at 2009 average rates). | |||||
| 2009 | 2010 | 2011 | 2012 | 2013 |
North America | 156,556 | 160,556 | 164,768 | 170,475 | 176,118 |
Western Europe | 100,327 | 105,392 | 109,094 | 113,116 | 116,926 |
World | 428,421 | 451,943 | 470,829 | 498,062 | 525,587 |
Source: ZenithOptimedia |
The report predicts that the internet will overtake newspapers to become the world's second-largest advertising medium in 2013. Newspaper ad expenditure was still 51% larger than internet ad expenditure in 2010, but newspaper expenditure is shrinking by 1.4% a year, as circulations continue to fall in developed markets, and readers migrate to the internet.
Meanwhile internet advertising continues to grow at a forecast average rate of 14.4% a year between 2010 and 2013. Newspaper ad expenditure is forecast to fall, while internet ad expenditure rises from to US$94.5 billion over the same period.
This year display advertising has taken over from search as the main driver of internet ad growth. Display, broadly defined to include online video and social media, has been invigorated by these fast-growing segments. Affordable, do-it-yourself tools to create streaming video ads have opened online video to small and local advertisers.
Television remains by far the largest medium and is continuing to increase its market share.
Advertising Expenditure By Medium (US$ million, current prices Currency conversion at 2009 average rate) | |||||
| 2009 | 2010 | 2011 | 2012 | 2013 |
Newspapers | 97,421 | 95,235 | 92,997 | 91,867 | 91,246 |
Magazines | 43,856 | 43,768 | 43,246 | 43,007 | 42,835 |
Television | 165,502 | 180,315 | 190,169 | 203,698 | 215,980 |
Radio | 31,672 | 31,995 | 32,828 | 34,077 | 35,243 |
Cinema | 2,091 | 2,308 | 2,451 | 2,606 | 2,764 |
Outdoor | 28,184 | 29,456 | 31,172 | 33,306 | 34,946 |
Internet | 54,230 | 63,049 | 71,623 | 82,358 | 94,467 |
Total * | 422,956 | 446,126 | 464,486 | 490,920 | 517,481 |
Source: ZenithOptimedia |
Share Of Total Adspend By Medium (% of Total by Year) | |||||
| 2009 | 2010 | 2011 | 2012 | 2013 |
Newspapers | 23.0 | 21.3 | 20.0 | 18.7 | 17.6 |
Magazines | 10.4 | 9.8 | 9.3 | 8.8 | 8.3 |
Television | 39.1 | 40.4 | 40.9 | 41.5 | 41.7 |
Radio | 7.5 | 7.2 | 7.1 | 6.9 | 6.8 |
Cinema | 0.5 | 0.5 | 0.5 | 0.5 | 0.5 |
Outdoor | 6.7 | 6.6 | 6.7 | 6.8 | 6.8 |
Internet | 12.8 | 14.1 | 15.4 | 16.8 | 18.3 |
Source: ZenithOptimedia |
Internet Advertising By Type (US$ million, current prices Currency conversion at 2009 average rates) | |||||
| 2009 | 2010 | 2011 | 2012 | 2013 |
Display | 18,230 | 21,435 | 24,958 | 29,184 | 34,126 |
Classified | 9,773 | 10,554 | 11,630 | 12,706 | 13,832 |
Paid search | 26,227 | 31,059 | 35,035 | 40,468 | 46,509 |
Total | 54,230 | 63,049 | 71,623 | 82,358 | 94,467 |
Source: ZenithOptimedia |
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