World Ad Spending Growing Faster Than U.S. in 2008
According to a new study from GroupM, Advertising spending in US measured media is expected to increase almost 4% in 2008 compared with 2007, when spending was up about 3%. Worldwide spending is expected to go up 7% in 2008, after an anticipated 6% increase in 2007.
US advertising spending is expected increase 3.7%, to $168.6 billion, in 2008. Spending in 2007 is expected to come in at 2.8% higher than in 2006. Worldwide spending is expected to go up 6.8%, to some $479 billion
Global Advertising Spending(2006-2008 Million $) | ||||||
Region | 2006 | % (YOY) Growth | 2007F | % Growth | 2008F | % Growth |
North America | $169.0 | 5.1% | $174.1 | 3.0% | $181.0 | 3.9% |
USA | 158.1 | 4.9 | 162.6 | 2.8 | 165.6 | 3.7 |
Latin America | 14.4 | 18.8 | 16.6 | 15.3 | 19.3 | 16.3 |
Western Europe | 116.4 | 4.8 | 122.0 | 4.8 | 127.2 | 4.3 |
Emerging Europe | 17.1 | 22.5 | 20.6 | 20.2 | 24.2 | 17.8 |
Asia Pacific (all) | 96.7 | 6.0 | 104.4 | 7.9 | 114.8 | 10.0 |
North Asia | 32.8 | 12.3 | 37.1 | 13.0 | 44.0 | 18.7 |
ASEAN | 8.0 | 7.9 | 8.7 | 9.0 | 9.5 | 9.4 |
Middle East & Africa | 9.6 | 14.8 | 11.0 | 14.0 | 12.4 | 13.1 |
World | 423.2 | 6.5 | 448.6 | 6.0 | 478.9 | 6.8 |
Source: GroupM, This Year Next Year, December 2007 |
Television and the internet are the primary engines of global ad growth, with 50% and 30%, respectively, of additional new investment in 2008, according to GroupM Futures Director Adam Smith. He also said spending on marketing services, such as sponsorships and public relations, is growing at a faster rate than for traditional advertising.
Smith reported that 5% of global ad investment is expected to shift from developed to emerging economies in 2008, the largest such shift ever recorded:
The 2008 spending expectations largely reflect the Olympics and the US election, says the report:
For the complete release from GroupM, please visit here.