The Top 10 Ad Spenders: Global Review and Forecasts

By: Liz Zuliani   Date: 25 April 2011

About The Author

Liz Zuliani

Diverse background in digital media, with experience working across large networks, to boutique

Liz Zuliani, EconomyWatch Contributor

 

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25 April 2011

You wouldn’t expect the Japan’s devastating quake, or the unrest in the Middle East to impact global adspend, but it has. ZenithOptimedia issued a press release in which the company revised this year’s growth in the industry to 4.2 percent, down from their earlier forecast of 4.6 percent.

The estimate knocks off about US$2.4 billion.

However, the underlying recovery in the market remains healthy according to ZenithOptimedia. The forecast for 2012 was raised from 5.2 percent to 5.8 percent. Developing markets are expected to increase their global market share of ad spend from 30.9 percent in 2010 to 35.1 percent in 2013.

But the best news is for online publishers: The internet is to become the world’s second largest advertising medium in 2013 overtaking newspapers. Bad news for the press.

Advertising expenditure by medium:

Advertising expenditure by medium

Source: ZenithOptimedia
US$ million, current prices Currency conversion at 2009 average rates.

The agency reported the large gap between developed and developing markets will continue. It’s forecast for North America indicate growth of 3.1 percent a year between 2010 and 2013 and Western Europe to grow by 3.5 percent.

In Japan, growth forecast was set at just 0.7 percent a year. The country’s forecast shrunk 4.1 percent following the country’s earthquake and tsunami devastation when broadcasters replaced all commercial slots with public-service announcements. The industry is however expected to bounce back with a 12.1 percent recovery in 2012.

The agency also forecasted 0.1 percent annual growth in the Middle East amid political instability.

The ten largest contributors to global adspend growth (2013 v 2010)

The ten largest contributors to global adspend growth (2013 v 2010)

Source: ZenithOptimedia
US$ million, current prices. Currency conversion at 2009 average rates. Adspend growth

ZenithOptimedia indicate two developing markets in the world’s top 10 advertising markets, and a third in 2013: China. China is expected to grow at an average rate of 13.6 percent per year till 2012 and overtake Germany. Other developing markets are expected to increase their global market share from 30.9 percent in 2010 to 35.1 percent in 2013.

Overall, developing markets will contribute 62 percent of new ad dollars over the next three years.

The network also expects the internet will overtake newspapers to become the world’s second-largest advertising medium during 2013 as the industry grows rapidly. The forecast average rate is set at 14.4 percent a year between 2010 and 2013.

Online social media is also poised to grow with huge audience numbers. Global display ad revenues are expected to grow at an average of 16.4 percent a year, while paid search grows by 12.8 percent.

View the full report from ZenithOptimedia.

Liz Zuliani

EconomyWatch.com

 

 


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