China Set for Explosive Ad Growth

October 5, 2011

zenithoptimedia-top-10-global-ad-markets-oct11.gifWhile the US will still maintain a comfortable lead in ad spending in 2013, number three China’s spending will surge in the next two years, according to [pdf] an October 2011 forecast from Zenith Optimedia. China, expected to spend $26.1 billion USD on major media advertising this year, will increase that figure almost 49% to $38.5 billion in 2013.

By comparison, the US will increase ad spend about 9%, from $151.7 billion this year to $166 billion in 2013. Number two Japan will also maintain its position, growing ad spend 3% from $46.1 billion to $47.6 billion.

Developing Regions Outgrow Established Regions

zenith-expenditure-region-oct-2011.JPGMost developing regions continue to expand their ad spend faster than developed regions. ZenithOptimedia forecasts North America to grow about 7% between 2011 and 2013, and Western Europe to grow about 6%. Meanwhile, Zenith Optimedia forecasts Asia-Pacific to grow about 15% in that time period, Central-Eastern Europe about 11%, and Latin America about 10%. Middle-East Africa is expected to see much more moderate growth of 2%.

Developing Markets Will Contribute 60% of New Ad $ in Next 3 Yrs

zenith-top-10-contributors-oct-2011.JPGThe sheer size of the US, 3.3 times the next-largest market, means it will contribute the most new ad dollars to the global market over the next three years (US$14.3 billion), despite its slow growth. However, the next five largest contributors are all developing markets: China (which contributes almost as much as the US, US$12.7 billion), Russia (US$4.7 billion), Brazil (US$2.9 billion), India (US$2.6 billion) and Indonesia (US$2.5 billion).

Overall, ZenithOptimedia predicts developing markets will contribute 59% of new ad dollars over the next three years.

Global Web Ad Spend to Rise 33%

Global internet advertising expenditures will rise about 33% between 2011 and 2013, according to other Zenith Optimedia predictions. Internet ad spend is expected to total about $72.5 billion USD this year and reach $96.4 billion in 2013. Total global ad spend, forecast at $460.3 billion for 2011, is expected to grow about 11% to about $510.6 billion in 2013.

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