After signs of stronger growth in the Americas and Asia Pacific, ZenithOptimedia has upgraded its global ad expenditure forecast for 2014. The Publicis Groupe agency now predicts global spending will grow 5.5% this year, reaching $537 billon. That’s an increase of 0.2% from the 5.3% growth that the shop predicted in December.
ZO predicts that the U.S. will contribute the most to global spending growth over the next three years, adding $24.1 billion in new spending during that time. China will be the second greatest contributor to growth, adding $16.4 billion. Rounding out the Top 5 growth contributors are Indonesia ($6.7 billion); Argentina ($6.5 billion), and Brazil ($3.8 billion).
Ad spending in North America grew 3.5% in 2013 and is expected to grow another 4.8% in 2014, boosted by the Winter Olympics and mid-term elections, ZO now predicts. And more growth is expected in the following two years, the agency said, forecasting a gain of 4.6% in 2015 for the region and 4.3% in 2016.
So-called “Fast Track Asia,” which includes China, India, Indonesia, Malaysia, Pakistan, Philippines, Taiwan, Thailand and Vietnam, grew 11% in 2013 and is expected to match or top that growth each year from 2014 through 2016, ZO stated.
Europe continues to
struggle. Ad expenditures in the region of Portugal, Ireland, Italy, Greece and Spain fell 8.5% last year, with another 1.3% spending decline expected for this year. Spending will gradually
begin to pick up in 2015 and 2016 with growth in both years hovering in the 2%-range ZO said.
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