Global TV Adspend to Increase 5 Percent

BOSTON: Global adspend is expected to grow 4.9 percent this year to reach $465.5 billion, with the TV sector accounting for 40 percent of all spending, according to the latest forecast from Strategy Analytics.

Global TV advertising is expected to increase by 5 percent in 2012 to $188.5 billion. Online adspend globally is forecast to grow by 12.8 percent to $83.2 billion in 2012, accounting for 18 percent of all spending globally. 

Spending in the U.S. is expected to increase by less than the global rate (2.7 percent this year) to $152.2 billion. This is a significant improvement on the 0.6-percent growth in 2011. In the U.S., online is expected to grow by 6.7 percent this year to $27.4 billion, while TV is forecast at 3.7 percent.

The U.S. underperforms Europe, which is expected to grow by 3.7 percent to $136.3 billion. Online advertising in Europe is forecast to increase by 11.7 percent this year, compared to 3.4 percent for TV.

Ed Barton, Strategy Analytics’ director of digital media strategies, said, “Major global-impact events led by the Olympics, the U.S. presidential elections and the European football championships, as well as Japan’s continuing recovery from the earthquake, combine to paint a brighter picture globally in 2012 for advertising spending overall. Furthermore, we expect that total ad spend will surpass half a trillion ($500 billion) dollars in 2014.”

Barton added, “Online advertising will continue along its growth trajectory fueled by strong growth in emerging markets and increased spending volumes on social networking and online video advertising.”