Worldwide Advertising Spend Trends

Posted on 9/1/2011 by Jim Pickerell | Printable Version | Comments (0)

According to eMarketer world advertising spend is expected to be about $500 billion this year. The online portion of this spend will make up about $80.2 billion, or 16.1% of the total. By 2015 online advertising spend is expected to reach $132.1 billion and be 22% of total advertising spend.

Internet ad spending will increase about 17.2% this year while magazine ad spend in North America is expected to increase no more than 3.1%.

The Interactive Advertising Bureau (IAB) which is comprised of more than 500 leading media and technology companies that are responsible for selling 86% of the online advertising in the U.S. reported that Internet advertising revenue reached $7.3 billion in the first quarter of 2011. Given that figure, and the growth rate of Internet advertising in the U.S. the total for the year will certainly be well above $30 billion.



Meanwhile the Publishers Information Bureau reports that total magazine advertising in the U.S. for the first six months of 2011 was $9,639,726,960, a 4% increase over 2010 sales. That will put magazine advertising for all of 2011 somewhere in the range of $19 billion. The sectors that exhibited the largest gains were Toiletries and Cosmetics, Automotive, Financial. More is being spent on Internet advertising than magazine advertising and the growth rate for Internet advertising is more rapid.

The Caret media agency network, headquartered in the UK, has lowered its predictions for the growth of global advertising spend for both 2011 and 2012, with Western Europe seeing the biggest downward shift.



By region, Carat is revising its North America forecast to 3.1% (from 3.9%) for this year and to 5.5% (5.9%) for 2012. Western Europe is cut to 2.3% (from 3.5%) for 2011 and to 3% (3.3%) for 2012. Overall companies are spending less than expected.

On a positive note, Carat has revised its 2011 prediction for ad spend for Central and Eastern Europe and believes it will be up 10.1% rather than the 9.5% previously predicted.

By sector, Carat predicts that global TV ad spend will grow 6% in 2011 and 6.2% in 2012. Worldwide, magazines are expected to have a negative growth of -0.4% this year but bounce back next year with a growth of 2.3%..


Copyright © 2011 Jim Pickerell. The above article may not be copied, reproduced, excerpted or distributed in any manner without written permission from the author. All requests should be submitted to Selling Stock at 10319 Westlake Drive, Suite 162, Bethesda, MD 20817, phone 301-461-7627, e-mail: wvz@fpcubgbf.pbz

Jim Pickerell is founder of www.selling-stock.com, an online newsletter that publishes daily. He is also available for personal telephone consultations on pricing and other matters related to stock photography. He occasionally acts as an expert witness on matters related to stock photography. For his current curriculum vitae go to: http://www.jimpickerell.com/Curriculum-Vitae.aspx.  

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