Muted growth prospects for global ad spend

London: Warc, the marketing intelligence service, expects global advertising spend to increase by 4.3 per cent in 2012 and by 4 per cent in 2013 according to its latest international ad forecast. That’s a downgrade compared to its June report of 0.5 per cent and 1.5 per cent respectively.

The reduction in forecast growth for advertising spend next year (based on 12 major markets) is a reflection, says Warc, of the continued uncertainty about the global economy.

Taking inflation into account, it means that global adspend is expected to rise by just 1.8 per cent this year and by 1.6 per cent in 2013.

Russia (up 14.6 per cent) and China (higher by 12.5 per cent) are expected to be the fastest-growing ad markets in 2013, followed by Brazil (9.5 per cent) and India (9 per cent).

The US, the world’s largest ad market with predicted revenue of $153 billion (Dh561.9 billion) in 2012, is expected to expand at a slower rate of 2.5 per cent next year without the benefit of certain big events.

Suzy Young, Warc’s data editor, explained: “The global ad market has been boosted this year by quadrennial events, namely the Olympics, the US presidential election and, to a lesser extent, Euro 2012. Next year will suffer by comparison, with advertisers having fewer incentives to spend when the underlying mood is generally one of caution.”

— Guardian News & Media 2012