Europe Tops U.S. In Global Ad Spend Growth In 2012

by Jack Loechner, Mar 8, 2012, 7:28 AM

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Following 3.8% growth in 2011, global advertising spending is expected to grow by 4.9% in 2012 to $465.5 billion, according to the latest Global Advertising Forecast from Strategy Analytics.

Although total US advertising spending is expected to increase by less than the global rate, at 2.7% this year to $152.1billion, it is a significant improvement on the 0.6% growth in 2011. The US also underperforms Europe as a whole, which is expected to grow by 3.7% to $136.3bn in 2012.

Advertising Spending Change 2011 to 2012
	% Change vs. 2011
Ad Type	Global	Europe	US
All advertising	4.9%	3.7%	2.7%
TV	5.0	3.4	3.7
Print	0.5	-0.1	-1.5
Other traditional	4.1	2.4	2.9
Online	12.8	11.7	6.7
Source: Strategy Analytics, February 2012

Ed Barton, Strategy Analytics’ Director of Digital Media Strategies, says that “Major global-impact events led by the Olympics, the US Presidential Elections and the European Football Championships, as well as Japan’s continuing recovery from the earthquake, combine to paint a brighter picture globally in 2012 for advertising spending overall. (In addition,)... total ad spend will surpass... $500bn dollars in 2014...”

Looking at spend by media type reveals that global TV advertising is expected to grow by 5% in 2012 to $188.5billion, equivalent to 40% of all global spending. Global print advertising is expected to grow by 0.5%, accounting for a 26.4% share. Other traditional formats including cinema and radio will grow by approximately 4%.

In contrast, global online advertising is expected to grow 12.8% to $83.2billion in 2012, accounting for 18% of global ad spending.

Share of Advertising Revenue by Media Type; 2012
Ad Type	Global	Europe	US
TV	40.5%	34.5%	41.0%
Print	26.4	31.3	24.1
Other traditional	15.2	13.8	16.8
Online	17.9	20.4	18.0
Source: Strategy Analytics, February 2012

Barton notes, “... the US continues to be a leader share of revenue generated by TV advertising... 41% in the US this year compared to 35% in Europe and 24% in the UK... share of advertising dollars allocated to the Internet... is projected to overtake print advertising in the US in 2016, a year ahead of when this is expected to happen for the total global market... ”

In the US, Online advertising is expected to grow by 6.7% this year to $27.4billion compared to 3.7% for TV and 2.9% for other traditional formats. Print is expected to decline by 1.5%.

In comparison, online advertising across Europe is expected to grow by 11.7% this year compared to 3.4% for TV and 2.4% for ‘other traditional’ advertising. Print is expected to decline by 0.1%.

Barton concludes by saying “... assuming that the Eurozone can build its way out of the current uncertainty, we are likely to see a situation characterized by some territories suffering a long term zero-to-negative growth environment where spending will remain very low (Spain, Greece, Italy and Portugal)... UK, Germany and France will grow slowly with the occasional boost from... drivers such as major sporting events. Growth, albeit from lower spending volumes, is likely to come from... Turkey and Russia... and the ongoing growth trajectory... of online video and social networking.”

To read complete report, please visit Strategy Analytics here.

 

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