GroupM revises down forecast growth in global ad spend to 5.1%
GroupM, the media investment management subsidiary of WPP, has revised down its forecast growth in global ad spend growth in 2012 from 6.3% to 5.1%.
The figures were detailed in the organisation’s annual report ‘This Year, Next Year’, which also found that advertising spend in measured media rose to $482bn in 2011 – up from $459bn a year earlier.
Peering even deeper into the future GroupM also projected a further 5.3% increase in 2013, taking global spend to $533.2bn.
Markets in the Eurozone periphery bucked this upward trend however, with markets in Greece, Ireland, Portugal and Spain recording declines of 6% in 2011 and an anticipated decline of 8.8% in 2012.
They aren’t expected to stabilise until 2013, assuming an ‘orderly normalization of the Eurozone’.
Elsewhere the report found that TV accounted for 43 percent of measured global media investment in 2011, a record high.
Print newspapers' share of advertising, meanwhile, hit a new low of 17 percent in 2011, and is expected to drop another percentage point in 2012 and 2013 whilst magazines also recorded a new low of a 10 percent increase in 2011.
GroupM Futures Director Adam Smith said that TV may now have peaked however, pointing out that “the continued development of internet advertising, notably video, will now possibly nip at TV's nominal share, though some internet video investment will simply return to different pockets of the same TV vendors.”