Global advertising expenditures will grow 4.8 per cent in 2012, according to the latest research from ZenithOptimedia, with Asia-Pacific exceeding that pace to record 7.4 per cent growth.
The media agency has nudged its 2012 forecasts for both global and Asia-Pacific adspend growth upward since its previous quarterly forecast in December, with the global prediction rising from 4.7 per cent to 4.8 percent, and Asia-Pacific moving from 7.2 per cent to 7.4 percent.
"The Olympics, the Euro Championships, improving USA economic indicators, recent global stock market rises and continued wealth increase in Asia will enhance the overall feel-good factor and drive consumer consumption for companies in Asia in 2012," said Malcolm Hanlon, ZenithOptimedia's chief operating officer, Asia-Pacific. "Recoveries and rebuilding in markets like Japan and Thailand will also increase the economic growth rates in these two major Asian economies. The media will benefit as large advertisers are investing in their brands – and into more high-value digital solutions."
Other highlights of the media agency's quarterly report, released include:
- China is on pace to overtake Japan as the No. 2 ad market by 2015.
- China will spend an additional $17.2 billion on advertising in 2014, compared with 2011, far outpacing the next biggest growth market (Russia, at $4.1 billion).
- Online advertising's share of global expenditures will rise from 16.4 per cent in 2011 to 22.1 per cent in 2014.
- In 2014, six markets will see online spend surpass 30 per cent of total spend, including China and South Korea.
The agency downgraded its overall 2012 growth forecasts for Western Europe (from 2.0 to 1.5 per cent) and Central and Eastern Europe (from 8.0 to 6.5 per cent). North America holds steady at 3.6 percent, while Latin America sees a significant improvement from 6.0 to 9.2 percent.
Adspend growth by country, 2011 versus 2014 (US$ millions):
Ad expenditures by region (US$ millions):
|Central & Eastern Europe||23,464||25,349||27,003||29,451||32,363|
|Middle East & North Africa||4,881||4,155||4,198||4,313||4,412|
|Rest of world||10,731||11,419||12,197||13,263||14,596|
(This article first appeared in Campaign Asia-Pacific.)