Warc downgrades 2015 global ad spend increase 5.1% amid Eurozone stagnation, Russian sanctions and Asian slowdown
Growth in global advertising expenditure is projected to slow to 5.1 per cent this year, following an estimated rise of 5.3 per cent in 2014, according to the latest Consensus Ad Forecast from Warc.
The firm, which weighs its predictions on the adspend predictions at current prices from ad agencies, media monitoring companies, analysts, and other industry bodies across 13 markets, found that India was to see an 11 per cent year-on-year increase in ad spending in 2015.
This was followed by China (10.3), Brazil (7.1) and the UK (5.7) with the US coming sixth with a growth of only 3.5 per cent. France will perform the poorest, with it set to lose 0.1 per cent of spending this year.
All media, barring newspapers and magazines, are predicted to record year-on-year growth in 2015, with internet seeing the greatest increase, up 16 per cent. TV has seen the largest downgrade of 2.7 per cent with growth this year now expected to come in behind cinema’s four per cent and the 3.9 per cent projected for 'Out of Home'.
James McDonald, a research analyst at Warc said: “The global economic outlook is more uncertain than six months ago, with Eurozone stagnation, Russian sanctions and a slowdown in Asia all threatening growth. It is therefore unsurprising that many market-watchers, including us, have revised down expectations.
“Despite the uncertainty, we should still see growth in global advertising expenditure of between 5-6 per cent this year and next.”
A further rise in adspend of six per cent is expected in 2016.