Marketing intelligence service Warc expects global advertising spend, based on 12 major markets, to increase by 4.3 per cent at current prices in 2012 and by 4 per cent in 2013, according to its latest international ad forecast.
If forecast inflation is taken into account, global adspend is expected to rise by just 1.8 per cent this year and by 1.6 per cent in 2013.
The reduction in forecast growth for advertising spend next year is a reflection of the continued uncertainty about the global economy and future business conditions.
Russia (14.6 per cent) and China (12.5 per cent) are expected to be fastest-growing ad markets in 2013, followed by Brazil (9.5 per cent) and India (9 per cent). However, it should be noted that forecast inflation is particularly high for both Brazil and India, and therefore, adspend growth decelerates to just 3.9 per cent and 1.4 per cent, respectively, when this is taken into account.
The US – the world’s largest ad market with predicted revenue of $153 billion in 2012 – is expected to expand at a slower rate of 2.5 per cent next yearwithout the benefit of election and Olympic spend, following predicted growth of 4.1 per cent in 2012.
Growth for the Euro zone countries and Japan is forecast to be limited due to fears of further economic recession.
Suzy Young, Data Editor at Warc, commented, “The global ad market has been boosted this year by quadrennial events, namely the Olympics, the US Presidential election and, to a lesser extent, Euro 2012. Next year will suffer by comparison, with advertisers having fewer incentives to spend when the underlying mood is generally one of caution.”