Ad Spend Forecast Again Revised Upward
Driven by a faster than expected rebound in the US advertising market and continued robust growth in Asia-Pacific and Latin America, worldwide ad expenditure is forecast to grow 3.9% in 2010, an upward revision of 1.0 percentage point from the 2.9% forecast issued in March 2010, according to Carat.
As major markets continue to stabilize, further recovery is forecast for 2011 with ad growth expected to increase 4.7%, up 0.7 points from the 4.0% forecast six months earlier.
The revised forecasts, however, are against weak 2009 comparators, and consist of significant regional variances:
Ad growth in 2010 has been driven by a recovery in North America, supported by robust growth in Asia-Pacific and Latin America. In Western Europe, forecasts have been revised upward in the UK, France, Italy, and Germany. A rebound in Russia has significantly boosted growth in Central & Eastern Europe:
- In the US, ad expenditure is forecast to grow 1.1% in 2010, and 1.7% in 2011.
- The Canadian economy is now in full recovery and the ad market has returned to normal conditions, according to Carat. The effect of the Vancouver Winter Olympics Games helped to fuel the Canadian ad market, which is now expected to grow 3.6% in 2010 (up from the 1.2% forecast 6 months earlier), and 4.5% in 2011.
- Double-digit ad growth is expected in China (16.8%), Brazil (12.7%), and Russia (10.8%).
- Ad spending is forecast to fall in Japan (3.1%), Spain (1.5%), and Germany (0.5%).
Below, other projections from Carat.
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