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India to lead increased ad spends in BRIC countries: Warc

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NEW DELHI: Global advertising expenditure is forecast to grow by 5.6 per cent at current prices in 2014, rising to 5.3 per cent in 2015.

According to Warc's latest International Ad Forecast, the BRIC countries led by India are expected to post the largest ad spend increase this year, although their impressive rates of growth are forecast to be much lower in real terms once inflation is taken into account.

Ad spend growth is forecast to rise 14 per cent in India (5.6 per cent adjusted for inflation), 12.4 per cent in Brazil (6 per cent), 12.3 per cent in China (9.5 per cent), and 8.6 per cent in Russia (2.2 per cent).

In its previous report published in October 2013, Warc anticipated global growth of 4.4 per cent in 2014 based on its analysis of 12 leading markets – Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Russia, the UK and the US.

However, improved trading conditions, greater economic stability and an expected stimulus from major sporting events, such as the FIFA World Cup and the Sochi Winter Olympics has led to a more positive outlook.

In the more established markets, the UK is forecast to record the highest rate of growth on 5.8 per cent (3.8 per cent adjusted for inflation), closely followed by the US at 5.6 per cent (3.8 per cent).

At current prices, they will be followed by Canada (3.2 per cent), Australia (2.9 per cent), Japan (2.3 per cent), Germany (2 per cent), Italy (0.7 per cent) with France trailing on 0.2 per cent projected growth.

"This year is set to record the highest annual rate of growth since 2010, when the industry was bouncing back from recession," said Warc data and journals director Suzy Young.

"This is largely because the outlook for the global economy is now stabilising and advertisers are starting to feel confident about making additional investments," she explained.

Looking to 2015, all 12 markets are expected to show growth in ad spend at current prices, with India increasing its ad spend at the fastest rate of 13.5 per cent. 

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