Global Advertising Spend on the Rise

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The global advertising market is now in a better position than at the beginning of the economic downturn in 2008 according to a global report by ZenithOptimedia.

The media agency network predicts that global expenditure in advertising has increased by 3.5% in 2011 despite the Eurozone crisis and is forecasted to increase by 4.7% in 2012. This comes in light that advertisers have built up large cash reserves following low interest rates, which are now likely to be invested into advertising.

Western Europe is expected to show smaller growth (2% in 2012), despite the London 2012 Olympics.

As expected, the majority of advertising spend will come from developing markets with a 58% share of total advertising spend between 2011 and 2014 from countries including China and Brazil.

On the other hand, in  the UK, they have reduced their 2011 ad spend growth forecast from 3.3% to 2.1%, but still expects that it will return to pre-recession levels.

Below are the forecasts by medium as provided :

  • TV growth forecast down from 5% to 1% growth (the most significant change of all media).
  • Furthermore, anticipated decline for national newspapers has been increased further from
    -1.2% to -3.3%. These figures were made prior to the closure of the News of the World, meaning it is likely to be further decreased.
  • The internet continues to grow faster moving from +7.9% to +8.3% than any other with display the fastest growing segment (driven by online video and social video).
  • Outdoor media is also down from 3.1% to 0.9%.

In 2012, the report predicts resurgence for outdoor media (owing to the arrival of the Olympics) and a stop to the decline in newspapers and magazines, once the full impact of the demise of the New of the World has been realised.

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