MAM

GroupM downgrades 2013 global ad spend

MUMBAI: Due to the continuing sluggishness in the US and European economies, the global ad spend in 2013 will grow by 4.5 per cent, as per GroupM’s revised forecast.

The study revealed that the forecast is almost a full percentage point lower than the 5.3 per cent spending hike GroupM predicted in June.

The 70-country forecast predicted that global ad spending in 2013 will increase 4.5 per cent compared to 2012, representing $531 billion.

The revised spending forecast was made in GroupM’s biannual worldwide report, “This Year, Next Year,” which also concluded that 2012 ad spending in measured media will hit $508 billion, a 4.6 per cent increase over 2011 spending of $486 billion.

For the U.S. market, the report said advertising investment in measured media grew 3.5 per cent in 2012 to $152.4 billion, up from $147.2 billion the previous year.

For 2013, the new report predicted a less optimistic 2.7 per cent increase to $156.5 billion.

GroupM chief investment officer Rino Scanzoni said, “Ad spending in 2013 won’t enjoy the boost from Olympic and election-year spending we saw in 2012. At the same time, overall economic conditions in the US do not support more than very moderate advertising spending expansion.”

GroupM Futures Director Adam Smith said ad investment in the Eurozone periphery (Greece, Ireland, Italy, Portugal and Spain) is expected to fall 15 per cent this year, a 40 per cent contraction from its peak spending year of 2007 and comparable in real terms to 1998 spending levels.

“Western Europe is the slowest region for ad spending growth, with a 2.6 per cent contraction expected in 2012, the worst year since 2009‘s 11 per cent collapse. Western Europe now accounts for 20 per cent of global advertising, down from 30 per cent in 1999 and heading for 17 per cent in 2017,” Smith added.

Smith also said that Russia and Turkey continue to lead ad spending growth in central and Eastern Europe, a regional economy that is one-fifth the size of Western Europe but with twice the ad spending growth.

The study is part of GroupM‘s media and marketing forecasting series drawn from data supplied by parent company WPP‘s worldwide resources in advertising, public relations, market research, and specialist communications.

The report predicted that investment in digital media would account for 19.5 per cent of measured ad spending globally this year ($99 billion) and 21.4 per cent in 2013 ($114 billion), with respective growth rates of 16 per cent and 15 per cent. Those figures are comparable to the GroupM forecast made earlier this year.

“Digital ad growth remains strong, sustained and structural, though one or two highly-digitized European markets now look for growth in usage as opposed to new users,” said Smith. “More newsworthy is our rising dependence on digital to support total growth, now furnishing over 60 per cent of new incremental ad dollars in 2012 and 2013. This produces a reciprocal reduction in TV’s contribution, being the only other large growth medium.”

In other media categories, TV accounted for 43 per cent of measured global media investment in 2012, the same amount recorded for the previous year.

“We continue to predict TV‘s share of global ad budgets peaking in 2012 at 43 per cent as other screens begin to claim meaningful amounts of consumer time,” Smith added.

Latest Reads

https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/09/26/dairy.jpg?itok=3Fp9NvWE
Cadbury introduces two new flavours

INDIA: The sweet battle of Cadbury inventors has finally come to an end. Mondelez India, the makers and bakers of some of India’s leading snacking brands like Cadbury Dairy Milk, 5Star, Oreo, Bournvita, etc. has announced the winning flavours of the ‘go Madbury for Cadbury’ campaign.

MAM Marketing MAM
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/09/25/fb.jpg?itok=eJylG81Z
Facebook & GroupM launch Media Playbook to help brands reimagine media strategies & unlock growth

Mumbai: GroupM and Facebook have come together to launch an industry-first media playbook for advertisers and marketers to adapt to the dramatic change in consumer behaviour as a result of COVID-19. The ‘Turn The Tide’ Media Playbook offers a perspective on the evolving consumer and media landscape...

MAM Marketing MAM
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/09/25/lyod.jpg?itok=draCTqbQ
Lloyd forays into refrigerator segment

NEW DELHI: Havells India has announced its entry into the refrigerator segment under its consumer durable brand - Lloyd. The company will also double the range with additional 25 models by Diwali this year. The refrigerator range is designed keeping in mind the modern kitchen aesthetics combined...

MAM Marketing MAM
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/09/25/ceat.jpg?itok=_8v0Apeq
Ceat signs Aamir Khan as brand ambassador for two years

MUMBAI: Ceat Tyres has signed Bollywood superstar Aamir Khan as its brand ambassador for two years. As part of an integrated marketing campaign, Aamir Khan will feature in two commercials during the course of the IPL 2020 to promote Ceat’s SecuraDrive range of premium car tyres. The first ad will...

MAM Marketing MAM
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/09/25/tv.jpg?itok=6XP07uvI
How to Decide Between QLED, OLED, 4K UHD or Full HD TV

According to ECD, when buying a smart television in India, you need to consider several factors such as size, operating system and the picture resolution. Apart from that, you also need to check the type of display the TV provides because it determines the overall picture quality. 

MAM Marketing MAM
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/09/25/ipl-d11.jpg?itok=Z6aMaH8d
Digital-first brands bet big on Dream11 IPL

NEW DELHI: Cricket is the by far the best media vehicle for any brand if it intends to connect with masses at a pan-India level. The game cuts across all socio-economic boundaries, age-groups, geogrpahies and reaches to 196 million households with television sets. The brand can further amplify its...

MAM Marketing Brands
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/09/24/disha.jpg?itok=sAWtgIJB
Disha Patani is Myntra's first-ever beauty brand ambassador

NEW DELHI:  Ahead of the festive season, Myntra announces Bollywood actress, Disha Patani, as its brand ambassador to further consolidate its strong position in the massive and rapidly-growing beauty and personal care (BPC) market in India. Disha has made her mark as a household name after...

MAM Marketing MAM
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/09/24/harley.jpg?itok=2LnSWQ_-
Harley Davidson exits India

Harley-Davidson will shut down manufacturing and sales operations in India as part of its restructuring exercise under ‘The Rewire’ programme, the US-based motorcycle maker announced on Thursday. Earlier, in August, the bike maker had indicated to restructure business in some its loss making...

MAM Marketing MAM
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/09/24/sleep.jpg?itok=aI9ddDVz
When Ikea got creative about sleep

Ikea, a global furniture and home furnishing brand, is promoting its sleep range products with clever print and outdoor campaign and positions itself as sleep expert. Designed and conceptualised by Mother London, the ads focuses on the central theme of sleep and turn an energy drink, anti-ageing...

MAM Marketing MAM

Sign up for our Newsletter

subscribe for latest stories

* indicates required