Global Ad Spend Expected to Grow by 5.2% This Year

January 16, 2014

This article is included in these additional categories:

Magazines | Newspapers | Out-of-Home | Radio | Spending & Spenders | TV Advertising

Warc-Global-Ad-Spend-Growth-by-Medium-in-2014-Jan2014Global ad spending will increase by 5.2% this year, a significant uptick from the predicted growth of 3.2% for 2013, but a slight cut from a prior forecast of 5.4% growth. That’s according to an updated outlook covering 13 countries from Warc, which strikes a familiar tone with respect to advertising media: all save print can expect an increase in expenditures. Even so, online advertising is the only channel which has seen its forecast revised upward.

Online advertising is projected to grow by 14.1% this year, representing an upgrade of 0.4% points from the last forecast. The next-fastest growing medium is expected to be cinema, though its forecast has been revised down by 0.4% points to 5.8%.

TV is expected to see a healthy 5% increase – no doubt buoyed by the World Cup and winter Olympics – but TV couldn’t escape the downgrade either, with its downward revision of 0.7% points the largest of the various media. It’s a similar story for out-of-home, with its projected increase of 4.8% down half a percent from last year’s forecast.

Finally, there hasn’t been a change in the projections for radio (+2.3%) and newspapers (-2.7%), although Warc is slightly more pessimistic now about magazines, dropping their forecast by 0.3% points to a 2.3% decline.

On a country-by-country basis, China (-0.2% points to 11.2%), India (-0.4% points to 11%), Russia (flat at 10.7%), and Brazil (-0.3% points to 10.4%) are projected to have the fastest growth rates this year. The US, the world’s largest ad market, is expected to see a rebound from last year’s modest growth and increase by 4%, though that represents a small downward revision of 0.2% points from June.

The overall forecast of 5.2% growth is in line with expectations from ZenithOptimedia, which recently projected a 5.3% increase in global ad spending this year.

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