GroupM revises ad spend forecasts to reflect global growth
Global spending on advertising in 2010 is forecast to increase more than expected compared to last year, according to WPP-owned advertising agency GroupM.
The agency has revised its global ad spend forecast for measured media this year to nearly $451 billion. This is up 3.5% compared to 2009 rather than the 1% growth predicted by the company’s last forecast, released six months ago.
Growth in ad expenditure will not, however, be universal, it was reported in Ad Week. GroupM said that US ad spending is expected to decline 1.3% in 2010 to $145 billion, albeit a less steep drop than the previous forecast of a 4% decline in spending in North America (most of which is in the US).
“The US media marketplace clearly bottomed out earlier this year and we expect moderate growth in 2011 consistent with [gross domestic product] improvement,” said Rino Scanzoni, Chief Investment Officer at GroupM. He added that television and online spending will outpace other media, attracting marketers with return on investment metrics enabling cost-effective marketing campaigns.
The picture is brighter in the BRIIC nations (Brazil, Russia, India, Indonesia and China), where healthy ad spend contributes significantly to the new global forecast.
China in particular remains the world’s biggest contributor to advertising growth, accounting for “one in three of all net new ad dollars we expect this year, and one in five as the rest of the world catches up in 2011,” according to GroupM Futures director Adam Smith.
The report also found that digital advertising spend currently plays a pivotal role in worldwide advertising expenditure growth, adding 10% to its measured total for 2009. GroupM predicted that digital ad spend will maintain its steady growth rate to reach 16% of global ad share in 2011.
Tags: global marketing
