The BRIC countries are expected to be the fastest-growing ad spend markets. Russia is predicted to record the biggest increase (+12.4%) in 2013, followed by Brazil (+9.5%), China (+9.0%) and India (+7.9%)
BestMediaInfo Bureau | Delhi | April 11, 2013
Warc, the London-headquartered marketing intelligence service, expects global advertising spend (based on 12 major markets) to increase by +3.0% at current prices in 2013 and by +5.4% in 2014, according to its latest International Ad Forecast.
If forecast inflation is taken into account, global ad spend is expected to rise by just +0.6% this year and by +2.4% in 2014.
This follows estimated ad spend growth of +3.8% at current prices in 2012. The predicted slowdown for 2013 is due to the absence of last year's ad spend boost from the Olympics and the US presidential election, alongside on-going concerns about the health of the global economy, particularly in relation to the Eurozone debt crisis.
Forecast ad spend growth in 2013, % change year-on-year
*Constant 2005 price forecasts take into account predicted inflation.
Forecast growth calculated in local currency. Source: Warc's International Ad Forecast
The BRIC countries are expected to be the fastest-growing ad spend markets both this year and next. Russia is predicted to record the biggest increase in ad spend (+12.4%) in 2013, followed by Brazil (+9.5%), China (+9.0%) and India (+7.9%).
With the exceptions of Brazil and Japan, all featured markets have seen downgrades to their forecasts for 2013 compared with our November report. The Eurozone countries will all see flat or negative growth in advertising spend for 2013.
Suzy Young, Data and Journals Director at Warc, commented, "With few major political or sporting events this year, global advertising spend growth was always expected to be slower than in 2012. The Eurozone debt crisis also continues to depress growth both among member countries and abroad. To offset this, global ad spend will be reliant on a solid performance from the US and strong growth from emerging markets."