Global ad-spend to increase 4.9% in 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 Strategy Analytics.

Although total UK advertising spending is expected to increase by slightly less than the global rate, at 4.2 per cent this year – to $20.9 billion – it is a significant improvement on the 1.4 per cent growth in 2011. The UK outperforms Europe as a whole, which is expected to grow by 3.7 per cent to $136.3 billion in 2012.

Ed Barton, Strategy Analytics’ Director of Digital Media Strategies, explains, “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. Furthermore we expect that total ad spend will surpass half a trillion dollars in 2014.”

Looking at spend by media type reveals that global TV advertising is expected to grow by five per cent in 2012 to $188.5 billion, equivalent to 40 per cent of all global spending. Other traditional formats including cinema, out of home and radio will grow by around four per cent.

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

Barton says, “Online advertising will continue along its growth trajectory fuelled by strong growth in emerging markets and increased spending volumes on social networking and online video advertising.”

It is a similar picture in the UK with online advertising leading the way. Online is expected to grow by 10.6 per cent this year to $7.6 billion compared to 0.7 per cent for TV, 0.3 per cent for print and 2.6 per cent for other traditional formats.

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.

Posted by on Feb 27 2012. Filed under Ads, Advertising, Articles, Markets, Research.

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