Global Ad Spend Headed for Solid Growth9 Jan, 2013 By: Doug McPherson
NEW YORK – Around the globe, media ad spending grew 5.4 percent to just under $519 billion in 2012 – up over the 3.6-percent growth rate in 2011, says eMarketer. This growth rate is expected to continue at about the same levels through 2016, topping out at $628 billion.
The two regions expected to drive ad spend growth for the next five years are the Asia-Pacific and Latin America markets, says eMarketer. In 2012, Latin America posted the fastest growth of any region — up 11 percent to $34.7 billion, and eMarketer says it will climb to $51 billion by 2016.
It estimates that China's ad spending will grow 12 percent in 2013 to $42.6 billion. China will also continue to climb – albeit at a somewhat smaller rate, adding 11 percent (2014), 10 percent (2015), and 10 percent (2016) in the coming years, growing to $64 billion by 2016. Overall, eMarketer predicts the Asia-Pacific region will grow 8.5 percent.
MediaPost reports that although eMarketer estimates U.S. advertising spending this year at an aggressive 4.9 percent growth – higher than other growth projections – its actual spending number is below that of other industry projections. eMarketer believes the U.S. will get to $166 billion this year, then growing slowly over the coming years to land at $189.2 billion in 2016. MediaPost contends 11 other estimates are higher than eMarketer's U.S. projections with Veronis Suhler Stevenson topping the list, putting the U.S. at $200 billion in 2012.
Western Europe will virtually stayed at the same levels in 2012 as a year ago – up 0.4 percent, but growth is expected to stay consistently above 2 percent in the coming years. The biggest ad spender in Europe, and the fourth largest in the world, Germany inched up 1.5 percent for 2012, totaling nearly $28 billion.
Overall, worldwide ad growth prospects are good, says eMarketer. "Despite fears in many countries of continued or renewed economic slowdowns, the advertising industry is expected to continue growing spending at healthy rates for the next several years, driven especially by increased investments in emerging markets," its analysis reads.