Aegis' 5-Year Outlook: Boost Regional Exposure, Push Digital
Call it a two-speed advertising world, where “high-gear” emerging markets drive growth in global expenditures for the next five years, while “low-gear” mature markets make a smaller contribution.
That’s how Aegis Group sees the industry developing during that time, according to company CEO Jerry Buhlmann. He offered the company’s perspective to analysts and investors at the Numis Securities Media Conference in London earlier this week.
The so-called BRIC countries (Brazil, Russia, India and China) will account for half of all growth in the global ad economy between 2011 and 2015, according to Buhlmann. North America will remain the world’s largest market during that time and contribute 19% to the industry’s total growth.
Another dozen or so faster-growing markets, such as South Korea, Vietnam and Turkey, will account for a combined 10% of global ad growth, while the currently sluggish Western Europe will add an additional 8%.
Digital will continue to grow by leaps and bounds, Buhlmann told the Numis conference attendees. By 2016, Internet and mobile advertising combined will account for nearly 25% of all media expenditures, up from about 15% today, per Aegis Media estimates.
Buhlmann outlined several key objectives for Aegis going forward, including increasing its exposure to faster-growing regions and continuing to push the company’s digital capabilities, which accounted for 35% of total revenues by the end of 2011.
The firm also intends to boost organic growth by broadening its service offerings, while boosting its international and new business profile, Buhlmann said. Its new business efforts have paid off lately -- the firm has won $6 billion in net new business over the last 18 months, with half of that tied to the global General Motors media assignment win this year.
The company will continue to make strategic acquisitions that can help achieve its objectives, Buhlmann added. Aegis has spent more than $1.2 billion since 2005 on approximately 85 acquisitions. During that time, the return on invested capital has averaged 14%, he said.
Recent MediaDailyNews Articles
-
Aereo Is Not Just For Cord-Cutters May 23, 6:34 p.m.
Are cord-cutters most likely to subscribe to Aereo? Not necessarily, according to early returns. CEO Chet ... -
Cars.com Drops Flag On NASCAR.com Sponsorship May 23, 6:25 p.m.
Cars.com has a need for speed. The site has a deal with Turner to sponsor a ... -
Worldwide Pay TV On The Rise, Big Growth In Asia May 23, 4:17 p.m.
North American pay TV subscribers may continue to show little or no growth for the first ... -
Activision Blizzard's Campaign Wins Grand Effie May 23, 4:12 p.m.
Video game marketer Activision Blizzards’ ad campaign “The Vet and the nOOb” for "Call of Duty: ... -
Mag Bag: Bonnier, Source Interlink Swap Mags May 23, 4:09 p.m.
Bonnier, Source Interlink Swap Mags Enthusiast publisher Bonnier Corp. continued wheeling and dealing this week with ... -
Madison Avenue Is Mad As Hell, March Mad: Takes More, Not Less Network TV May 23, 7:46 a.m.
Demand for network TV advertising, which had been lagging so far this year, surged in April ... -
NY1 Show Goes National May 22, 7:32 p.m.
Time Warner Cable (TWC) will begin distributing a show about Broadway and theater at large to ... -
TV Model: Nets, Stations Split Retrans 50/50 May 22, 6:02 p.m.
Gray Television CFO Jim Ryan suggested that networks may capture more than half of an affiliate’s ... -
Newspaper, Magazine Ad Fortunes Continue To Decline May 22, 5:59 p.m.
The release of fourth-quarter figures for newspaper advertising and first-quarter figures for magazine ad pages earlier ... -
Equifax Taps Dentsu's 360i As Lead Agency May 22, 5:24 p.m.
Data collection company Equifax has selected Dentsu shop 360i to be its lead agency -- for ...
Be the first to comment on "Aegis' 5-Year Outlook: Boost Regional Exposure, Push Digital"
Leave a Comment