ZenithOptimedia: Ad Spending to Grow by 5.6 Percent in 2015

LONDON: ZenithOptimedia is predicting that global ad spending will grow 4.1 percent in 2013, reaching $518 billion, accelerating to 5.6 percent in 2015.

The gains will again be led by developing markets, which are expected to contribute 61 percent of ad spending growth between 2012 and 2015, increasing their share of global adspend from 34 percent to 37 percent. Developed markets will grow by just 2 percent on average, hurt by the Eurozone crisis. Ad expenditure is predicted to be much more robust in North American than in Europe, as consumer confidence, retail sales, job numbers and the housing market continue on an upward trend. Latin America is also set for rapid growth, alongside Eastern Europe, Central Asia and "Catch-up Asia" (China, India, Indonesia, Malaysia, Pakistan, Philippines, Taiwan, Thailand and Vietnam). Even with the growth of developing markets, the U.S. is still the largest contributor of new ad dollars. Between 2012 and 2015 the U.S. is expected to contribute 28 percent of the $76 billion that will be added to the global adspend.

The Internet will be leading most of the growth by medium, due in part to the rapid development in social media and online video. Internet adspend is expected to grow by 14.6 percent in 2013, while traditional media grows by just 1.7 percent. Television’s share of global adspend has somewhat stabilized, after having grown steadily over the last three decades. TV accounted for 39 percent in 2010, and is expected to contribute 40.2 percent in 2012 and 40 percent in 2015. However, since online video continues to grow, that means that video formats overall—TV plus online video—are still increasing their share of global adspend, from 41.5 percent in 2010 to 42.6 percent in 2015.

“Advertisers are willing to increase their budgets wherever they can achieve a strong return on investment,” said Steve King, the global CEO for ZenithOptimedia Group. “This means that developing markets, social media and online video are all growing rapidly, supporting continued expansion in global ad expenditure despite stagnation in the Eurozone.”