BRICs drive adspend growth

09 March 2011

LONDON/SINGAPORE: Strong growth in Brazil, Russia, India and China will spur the international advertising sector's continuing recovery over the period to 2012, according to Warc's latest figures.

The International Ad Forecast, released every quarter, predicts the average expansion across seven main media in the world's 12 biggest markets should accelerate from 4.6% in 2011 to 5.5% in 2012, at current prices.

Emerging economies and the continued rise of the internet - growing more than twice as fast as any other mainstream medium this year - are set to be the two primary drivers supporting such a process.

Of the featured countries, India is anticipated to report the greatest uptick, improving by 18.5% in 2011 and lodging a similar increase in 2012.

Russia takes second place on this measure, enjoying an 11% leap, closely followed by China, posting a 12.5% surge, and Brazil, where budgets could climb 11%.

In the US, current trends also represent the best start to a decade since the 1980s, as returns rise 3.5% this year and 4.5% in 2012.

Elsewhere, Japan is projected to eke out 1.2% growth in 2011, the smallest annual rise of all the nations assessed.

The major European countries also fall into the bottom half of Warc's sample, as Italy sees a 3.4% jump this year, Germany experiences a 3.3% lift, and the UK and France both climb 2.8%.

More broadly, the Forecast confirm China's heightened presence on the global stage, as it is due to supplant the UK as the world's fourth largest advertising sector in 2011, and beat Germany to the number three slot in 2012.

The US remains by far the most sizeable single outlet, accounting for approximately 43% of tracked advertising spend in 2011 among the 12 nations covered by Warc's International Ad Forecast.

Japan's 12.8% share constitutes the second biggest this year, trailed by Germany's 7.3%, China's 7% and the UK's 6.6%.

Online advertising is predicted to grow by 12.7% across the 12 markets analysed, an improvement standing at 4.8% for outdoor and television, 4.6% regarding cinema, and 4.4% concerning radio.

Less positively, newspapers are pegged to register a 0.8% decline, while magazine ad sales contract 0.4%.

Suzy Young, Warc's data editor, said: "The overall outlook for the global ad market is upbeat. Advertising experienced a stronger than expected bounce back last year following a dismal 2009."

"This will be consolidated in 2011/12 with the BRICs continuing to post double-digit growth and many of the established ad markets regaining or overtaking pre-recession levels. The Olympics will provide a welcome boost for the industry in 2012."

The countries featured in the International Ad Forecast are: Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Russia, the UK and US.

Spending figures apply to TV, newspapers, magazines, the web, outdoor, radio and cinema, and include display and classified advertising. All expenditure totals exclude production costs.

To find out more information about Warc's data service, click here.

Data sourced from Warc