Global ad revenues set to rise

27 August 2012

PARIS: Global adspend is set to increase in 2012 and 2013, albeit by lower levels than was previously predicted in both years, according to a new forecast from Carat, the media agency.

Worldwide growth is now projected to reach 5% for 2012 and 5.3% for 2013, adjusted downwards from the firm's predictions, made in March, of 6% and 5.8% uplifts respectively.

Television will remain the dominant channel overall, but the data show that spending on digital will overtake newspapers in 2012 rather than 2013, as was previously indicated.

Breaking down the figures by geography showed that growth will also be concentrated in areas outside the US and European Union, reflecting the broader economic climate.

"The trend of the two-speed world continues, with rates of growth in the emerging economies remaining well ahead of the US and Western Europe," said Jerry Buhlmann, chief executive of Aegis, the parent company of Carat.

More specifically, Latin America is forecast to post the largest regional increases, of 12% in 2012 and 9% in 2013, driven by Brazilian growth of 12.8% and 9.4% for these two years in turn.

Growth in Russia of 14.1% and 13.1% over the same period will boost Central and Eastern Europe's expansion for this year to 7.9% and support a rise of 8.8% next year, the study added.

Conditions should also remain robust in China, which will generate an additional 11% in revenue in 2012 and expand by 9.8% in 2013, similarly driving up Asia Pacific's annual totals by 6.8% and 6.5%.

North America is set to grow by 4.9% and 5.3% over the period in question. Western Europe, however, trails the rest of the world, with anticipated increases of 0.2% in 2012 and 1.1% in 2013. The UK will enjoy above-average growth of 2.8% each year.

Less positively, Spain and Italy are due to see sharp declines – the former by 8% and 5.4%; the latter by 5% in 2012, with slight rebound in 2013, albeit still yielding a decline of 0.4%.

Data sourced from Carat; additional content by Warc staff