Citing "uncertain" economic condiitons in the U.S. and Europe, WPP's GroupM unit has revised its global ad spending outlook for 2012 down 1.2 percentage points this morning. Worldwide ad spending is now forecast to expand 5.1% -- down from 6.3% in GroupM's previous forecast last year.
The revised spending forecast was made as part of the release of GroupM’s biannual worldwide report, “This Year, Next Year,” which also said that 2011 advertising spending in measured media hit $482 billion, a 5% increase over 2010 spending of $459 billion.
Based on its updated outlook, worldwide ad spending will hit $482 billion this year, and is now projected to rise 5.3% in 2013 to $533.2 billion.
The report projects U.S. ad spending will grow 3.6% to $152.5 billion in 2012. The new estimate is down from GroupM's original forecast of a 4% growth rate in 2012.
“We attribute the decline in U.S. ad spending to a number of factors, including a loss of economic momentum, the global deterioration from all continents but particularly the Eurozone and political and fiscal uncertainty at home for the election and beyond,” GroupM Chief Investment Officer Rino Scanzoni said in the announcement.