Asia and Latin America to see adspend grow

09 March 2009

LONDON: Global adspend is set to fall by 1.1% this year, after a decline of 1.5% in 2008, but both Asia Pacific and Latin America will buck the overall trend, according to figures prepared by WARC Online for the World Federation of Advertisers.

Among the major advertising markets, the US will see ad revenues fall by 2.5% in real terms, while Canada will post growth of around 2%.

Online is likely to be the only major "winner" of the downturn in North America, with revenues improving by around 13% in the US, and by 20% in Canada.

In the Eurozone-12, adspend will stagnate at around 0.1%, with Spain and the UK the worst hit markets, with totals down by 7% and 6% respectively.

Asia Pacific's ad revenues will expand by 4%, with China's ad market, valued at $74.7bn (€58.8bn; £53.2bn) on ratecard data, seeing growth slow to 9% compared with recent double-digit uplifts.

Indian adspend has increased in size by an annual average of 16% from 2000 to 2007, but this will also drop off to an upswing of just 5% this year, while Japan will probably see an overall decline of 3%.

Latin America, by contrast, is set to experience the highest level of total growth, with advertising expenditure in the region rising by 11% this year.

Among the forecast key trends for the next few years is the growth in popularity of the mobile internet, with usage levels likely to increase from 54 million this year to 91.7 million by 2012, while mobile adspend will reach $13.9bn by 2011.

Subscribers to WARC Online can access a full version of this article by clicking here.

The World Federation of Advertisers releases its full Annual Report 2008 next week; for more information, click here.

Data sourced from WARC Online/World Federation of Advertisers