 INTERNATIONAL | FORECASTS |
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| Europe's Economic Crisis Causes Ad Sales to Drop |
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This year's forecast on increased ad spend worldwide has decreased, according to the main consulting companies. European countries step on the brake; and the world map is rearranged.
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As the economic crisis continues to spread across Europe, the world will continue to suffer the consequences. Now, two of the industry's main consulting companies have slightly lowered their forecasts about this year's ad spend worldwide. The industry is growing; yet slower.
On the one hand, the 4.8% growth predicted by ZenithOptimedia in March became 4.3% (US$ 502 billion), due mainly to the drop in the Eurozone (1.1%) and the slight improvement in Western Europe (0.4%).
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Magna Global has also changed its forecast. Ad spend worldwide was expected to grow 5% in 2012, but now, with the recession, the number has decreased to 4.8%. According to the company, Western Europe has been "shaken, but [the] rest of the world shows resilience." Magna Global predicted US$480 billion in global ad spend this year, as the US, Japan, China, Germany and the UK make up the top five markets.
The company also highlights emerging markets, which currently account for 25% of global ad spend, surpassing Western Europe's 23%. The total ad spend in Western Europe will decline 0.2% "amidst economic slowdown, political uncertainty and fiscal austerity," said the company.
Magna also predicts emerging markets will grow to represent 33% of global ad revenue by 2017. In 2013, Brazil will tower over the UK, becoming the fifth-largest ad market, and Russia will surpass Italy at the 10th position. By 2017, China will rank second, followed by Brazil (fourth) and India (seventh) according to Magna.
"The US remains the largest market with US$152 billion," said ZenithOptimedia, and added the country's economy "is in a much better place than it was three years ago." Meanwhile, Magna Global also highlights the country's ad spend, forecasting a 4% growth for 2012, promoted by the presidential election (US$ 2.5 billion) and the Summer Games (US$ 630 million).
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