According to the most recent ZenithOptimedia ad expenditure forecast, Global expenditure will grow 4.6% in 2013, reaching US $525 billion by the end of the year. Developing markets are forecast to grow by 8% on average in 2013. Central & Eastern Europe will bounce back after a tough 2012 with 7.4% growth in 2013, while Asia Pacific (excluding Japan) grows by 8.2%, and Latin America grows by 10.1%.
In summary, the report includes these forecasts:
The report says that North America has had a particularly strong 2012 thanks to record Olympic audiences and heavier than expected political advertising in the US. The forecast expects solid 3.6% growth from North America in 2013.
Digital media, particularly Internet advertising, are supplying most of the growth in spend by medium. Internet advertising is expected to grow by 15.1% in 2013, while traditional media will grow by 2.3%.
Major Media Advertising Expenditure By Region (newspapers, magazines, television, radio, cinema, outdoor, internet; US$ 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... “
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