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Europe Tops U.S. In Global Ad Spend Growth In 2012

14 Mar 2012

Following 3.8 per cent growth in 2011, global advertising spending is expected to grow by 4.9 per cent in 2012 to $465.5 billion, according to the latest Global Advertising Forecast from Strategy Analytics.

Although total US advertising spending is expected to increase by less than the global rate, at 2.7 per cent this year to $152.1billion, it is a significant improvement on the 0.6 per cent growth in 2011. The US also underperforms Europe as a whole, which is expected to grow by 3.7 per cent to $136.3bn in 2012.

Ed Barton, Strategy Analytics' Director of Digital Media Strategies, says that "Major global-impact events led by the Olympics, the US Presidential Elections and the European Football Championships, as well as Japan's continuing recovery from the earthquake, combine to paint a brighter picture globally in 2012 for advertising spending overall. (In addition,)... total ad spend will surpass... $500bn dollars in 2014..."

Looking at spend by media type reveals that global TV advertising is expected to grow by 5 per cent in 2012 to $188.5billion, equivalent to 40 per cent of all global spending. Global print advertising is expected to grow by 0.5 per cent, accounting for a 26.4 per cent share. Other traditional formats including cinema and radio will grow by approximately 4 per cent.

In contrast, global online advertising is expected to grow 12.8 per cent to $83.2billion in 2012, accounting for 18 per cent of global ad spending.

Barton notes, "... the US continues to be a leader share of revenue generated by TV advertising... 41 per cent in the US this year compared to 35 per cent in Europe and 24 per cent in the UK... share of advertising dollars allocated to the Internet... is projected to overtake print advertising in the US in 2016, a year ahead of when this is expected to happen for the total global market... "

In the US, Online advertising is expected to grow by 6.7 per cent this year to $27.4billion compared to 3.7 per cent for TV and 2.9 per cent for other traditional formats. Print is expected to decline by 1.5 per cent.

In comparison, online advertising across Europe is expected to grow by 11.7 per cent this year compared to 3.4 per cent for TV and 2.4 per cent for ‘other traditional' advertising. Print is expected to decline by 0.1 per cent.

Barton concludes by saying "... assuming that the Eurozone can build its way out of the current uncertainty, we are likely to see a situation characterised by some territories suffering a long term zero-to-negative growth environment where spending will remain very low (Spain, Greece, Italy and Portugal)... UK, Germany and France will grow slowly with the occasional boost from... drivers such as major sporting events. Growth, albeit from lower spending volumes, is likely to come from... Turkey and Russia... and the ongoing growth trajectory... of online video and social networking."

Source: Mediapost

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