GroupM predicts a 2.9% hike in US ad spending to $161bn in 2014
GroupM published its first prediction for 2014, stating that global ad spending will increase 5.1 percent compared to 2013, representing $533bn.
For the US market, the report said advertising investment in measured media would grow only 1.8 percent in 2013 to $156bn, up from $153bn in 2012. For 2014, the forecast is a 2.9 percent hike in spending to $161bn.
GroupM also revised its biannual global measured advertising spending forecast for 2013 down to $507bn, after it recorded only a 3.4 per cent growth rate compared to the 4.5 per cent rate predicted in December of last year.
“We estimate marginal growth in advertising spending in 2014 on a comparable component basis,” said Rino Scanzoni, GroupM’s chief investment officer for North America. “However the Sochi Winter Olympic games will add an additional 50 basis points to the growth rate with funding coming primarily from existing budgets.”
The ‘This Year, Next Year,’ report also included a final tabulation for 2012 revealing advertising spending in measured media hit $490bn, a 3.6 percent increase over spending in 2011.
Regarding worldwide spending, Smith said the downward revision to growth in 2013 ad spending could be attributed primarily to continued economic discord in the Eurozone—the same reason that led GroupM to revise its 2012 forecast downward.
“The Eurozone periphery, specifically Italy, Spain, Portugal, Greece and Ireland, is once again the main reason for the decline,” Smith said. “Stabilisation is elusive. We now expect this group to record an 11 per cent fall in measured advertising in 2013.”
The data for the study was supplied by parent company WPP's worldwide resources in advertising, public relations, market research, and specialist communications.