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GroupM Forecasts 3.5 Percent Global Ad Spending Increase for 2010 

GroupMGlobal advertising spending in measured media is expected to increase 3.5 percent in 2010 to $451 billion, revised up from a projected 1 percent growth six months ago in the most recent 70-nation forecast report from GroupM.

If achieved, the dollar total equals the amount spent in 2006-2007, or in 2004-2005 when accounting for consumer price inflation. The report also forecast a 4.5 percent global increase for 2011.

The study, “This Year, Next Year” 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. It was released today by GroupM Futures Director Adam Smith and GroupM Chief Investment Officer Rino Scanzoni.

In the US, ad spending is expected to decline 1.3 percent in 2010 to $145 billion, down from the $147 billion spent in 2009, which represented a 7 percent drop from the previous year. In 2011, US ad spending is projected to increase 2.5 percent to $149 billion.

"The US media marketplace has clearly bottomed out earlier this year and we expect moderate growth in 2011 consistent with GDP improvement,” said Scanzoni. “Television and online spending will outpace other media as they lead with return on investment metrics."

As anticipated, countries in the so-called BRIIC nations (Brazil, Russia, India, Indonesia and China) contributed significant growth.

“China remains the world's biggest contributor to ad growth in 2010, accounting for one in three of all net new ad dollars we expect this year, and one in five as the rest of the world catches up in 2011,” said Smith. “Indonesia and India are the next biggest contributors from Asia. Our grouping of 'new world' countries accounts for 34% of the global economy this year and 30% of measured media investment.”

Smith also said digital advertising expenditures are also playing a key role in worldwide advertising expenditure growth.

“The recession has not impacted internet ad spending except in a handful of highly-stressed markets, adding 10 percent to its measured total in 2009,” Smith said. “What continues to power the medium is the steady advance in creativity, analysis and technology which embeds digital in almost all marketing activity. Measured internet added two points of global ad share in each of 2007, 2008 and 2009 and we think it will sustain a rate of one point a year this year and next, to reach 16 percent in 2011.”

The full “This Year, Next Year” worldwide report, which contains forecast figures for 70 nations worldwide, is now available. For copies, please notify the media contacts listed below.

Media USD m, current prices

 
2009
2010f
2011f
NORTH AMERICA
158,716
157,106
161,232
yoy %
-7.1
-1.0
2.6
LATIN AMERICA
23,770
26,467
28,697
yoy %
2.3
11.3
8.4
WESTERN EUROPE
99,941
102,001
104,384
yoy %
-11.2
2.1
2.3
CENTRAL & EASTERN EUROPE
17,316
18,443
20,406
yoy %
-17.7
6.5
10.6
ASIA-PACIFIC (all)
121,314
131,208
139,805
yoy %
-2.8
8.2
6.6
NORTH ASIA
48,361
54,901
59,441
yoy %
4.4
13.5
8.3
ASEAN
11,339
13,436
15,220
yoy %
9.3
18.5
13.3
MIDDLE EAST & AFRICA
14,273
15,448
16,478
yoy %
5.5
8.2
6.7
WORLD
435,329
450,673
471,003
yoy %
-6.6
3.5
4.5

 

About GroupM
GroupM is the leading global media investment management operation. It serves as the parent company to WPP media agencies including Maxus, MEC, MediaCom, and Mindshare. Our primary purpose is to maximize the performance of WPP’s media communications agencies on behalf of our clients, our shareholders and our people by operating as a parent and collaborator in performance-enhancing activities such as trading, content creation, sports, digital, finance, proprietary tool development and other business-critical capabilities. The agencies that comprise GroupM are all global operations in their own right with leading market positions. The focus of GroupM is the intelligent application of physical and intellectual scale to benefit trading, innovation, and new communication services, to bring competitive advantage to our clients and our companies.

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