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Carat predicts global ad spend growth at 5% in 2014 & 2015

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MUMBAI: Carat, a global media network, published its updated forecasts for worldwide advertising expenditure in 2014 and 2015, with market optimism demonstrated through strong global and regional forecasts.

Based on data received from 59 markets across America, Asia Pacific and EMEA, Carat’s latest forecast shows overall global advertising revenues accelerating by +5.0 per cent in 2014, an increase on the +4.8 per cent predicted in March 2014, and reaffirming positivity for 2015 with year-on-year growth predicted at +5.0 per cent.

From a regional perspective, Carat predicts further positive momentum in 2014 for North America and Western Europe, compared with figures announced in March 2014. The US continues to show strong on-going market growth, with levels of advertising spend in North America expected to exceed the pre-recession peak in 2007 for the first time by the end of 2014. Western Europe is predicted  to see a return to positive growth of +2.7 per cent after two consecutive years of declining advertising spend, driven by a strong UK advertising market forecast to grow by a robust +7.5 per cent, this year.

Whilst forecasts show a slight decline in growth when compared with predictions from March 2014, Asia Pacific and Latin America are still both forecast  to outperform global predictions, with growth rates for 2014 of +5.4 per cent and 12.1 per cent respectively, and the only regions to see double digit growth in some markets.  Carat’s data also highlights that the outlook for 2015 continues to be encouraging with all key markets forecast to return to positive growth.

In media, digital outperforms previous predictions for 2014 with year-on-year growth forecast at +16.1 per cent. Digital  will also increase its total share of spend, reaching 20.5 per cent in 2014 and 22.6 per cent next year, when it will outpace the combined Magazines and Newspaper global share for the first time. Whilst the steady decline in print is expected to continue, all other mediums are predicted to achieve year-on-year growths of approximately 3-5 per cent in 2014 and 2015.

Dentsu Aegis Network CEO Jerry Buhlmann said, “Carat’s latest advertising forecast gives us increased optimism for the outlook of global and regional advertising spend. With the global recession further behind us and a healthy trend of 5 per cent year-on-year global ad growth, there is positive momentum building across the industry.”

He added, “Whilst Digital continues to headline market trend discussions, the components within this dominant media now provide the interesting chapters, with the opportunities in mobile leading the debate. With changes and trends in consumer behaviour driving business opportunities, brands need to deliver innovative and integrated solutions to reap the rewards ahead.”

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