Global Ad Spending Strengthening

According to the most recent ZenithOptimedia ad expenditure forecast, Global expenditure will grow 4.6% in 2013, reaching US $525 billion by the end of the year. Developing markets are forecast to grow by 8% on average in 2013. Central & Eastern Europe will bounce back after a tough 2012 with 7.4% growth in 2013, while Asia Pacific (excluding Japan) grows by 8.2%, and Latin America grows by 10.1%.

In summary, the report includes these forecasts:

  • Global ad expenditure growth to strengthen over the next two years, rising from 3.8% in 2012 to 4.6% in 2013 and 5.2% in 2014
  • Developing markets to grow by 8% in 2013, and internet advertising by 15%
  • Eurozone ad expenditure to return to slow growth in 2013 after decline in 2012
  • The US to contribute 29% of ad spend growth between 2011 and 2014
  • Developing markets to contribute 59% of ad spend growth between 2011 and 2014, and increase their share of global ad spend from 33% to 36%
  • Internet’s share of expenditure to rise from 16.0% in 2011 to 21.4% in 2014, exceeding 30% in seven markets
  • European football championship, Olympics and US elections to help television attract a record 40.4% of global ad spend in 2012

The report says that North America has had a particularly strong 2012 thanks to record Olympic audiences and heavier than expected political advertising in the US. The forecast expects solid 3.6% growth from North America in 2013.

Digital media, particularly Internet advertising, are supplying most of the growth in spend by medium. Internet advertising is expected to grow by 15.1% in 2013, while traditional media will grow by 2.3%.

Major Media Advertising Expenditure By Region (newspapers, magazines, television, radio, cinema, outdoor, internet; US$ million, current prices)

 

2012

2013

2014

North America

$172,039

$178,313

$186,344

Western Europe

107,885

109,668

112,642

Asia/Pacific

140,383

148,423

157,155

Central & Eastern Europe

26,631

28,592

31,089

Latin America

38,080

41,935

45,600

Middle East & North Africa

4,198

4,313

4,412

Rest of world

12,321

13,468

14,812

World

501,536

524,712

552,054

Source: ZenithOptimedia, October 2012

The forecast for global growth in 2012 has been reduced to 3.8%, from the 4.3% published in June. Advertisers have cut spending in the Eurozone in response to further economic weakness, to shrink 3.1% over the course of this year, compared to the 1.1% decline forecasted in June. As advertisers have recalibrated their expectations for future growth in the region, budgets are expected to resume a slow 0.9% growth in 2013, strengthening to 2.3% in 2014, assuming the Eurozone remains intact.

Major Media Year-On-Year Percent Change (newspapers, magazines, television, radio, cinema, outdoor, internet)

 

2012 vs. 2011

2013 vs. 2012

2014 vs. 2013

North America

4.2%

3.6%

4.5%

of which USA

4.3

3.6

4.4 

Western Europe

-0.7

1.7

2.7

Asia Pacific

6.2

5.7

5.9

excluding Japan

8.0

8.2

8.5 

Central & Eastern Europe

1.8

7.4

8.7

Latin America

7.7

10.1

8.7

Middle East & North Africa

1.0

2.8

2.3 

Rest of world

6.3

9.3

10.0

World

3.8

4.6

5.2

Source: ZenithOptimedia, October 2012

Steve King, Global Chief Executive Officer for ZenithOptimediaGroup, says that “... advertisers are broadly continuing to invest... (but) are seeking to ensure that any expenditures are delivering strong return on investment... “

For additional information from ZenithOptimedia, please visit here.

 

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