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Increased Advertising Investment Is Forecast for 2011
With the recovery of world economy, the volume invested in advertising is increasing on a global lelvel, a trend that would continue in the next months. This can be seen in forecasts published by different media agencies and consultants in the last few days. According to ZenithOptimedia, during all of 2010 there will be an increase of 4.9% compared to 2009, a growth of 4.6% in 2011 and 5.2% in 2012—year in which the 2008 figures would be surpassed—and 2013.
Meanwhile, GroupM foresees that the 500.000-million-dollar figure will be surpassed in 2011 for the first time, something dynamized by an increase in the investment on automobiles, cosmetics, beverages, finantial services, entertainment and foods. On the other hand, a Magnaglobal forecast indicates that in 2011 the growth will be around 5.4%, and that in the following years it will reach 6.3%. At any rate, it warns that problems like the high unemployment rates in the United States, fears of default in Europe o public expenditure cuts can affect the activity.
Every forecast indicates that emerging markets will have a better performance than the rest in the next few years. ZenithOptimedia forecasts a 10% growth between 2010 and 2013 in Western Europe, 9% in The United States (main market on a global scale) y 5% in Japan (second global target.) Meanwhile, according to the same firm, Latin America will gain a 26% growth, Eastern Europe a 31% growth, Asia-Pacific without counting Japan a 36% growth. The two main emerging markets, Brazil and China, will gain a 31% and 51% growth respectively. It is indeed estimated that the Asian country will surpass Germany next year and will position itself as the third advertising market worldwide.
Magnaglobal’s report, for its part, indicates that the most active countries in 2011 will be Argentina, China, India, Kazakhstan and the Ukraine which, together with Serbia will be the most dynamic ones from now to 2016. It was also indicated that Brazil, China, India and Russia will be side by side with Germany, Japan, the United States, France and the United Kingdom regarding technological advances and new trends in advertising.
According to ZenithOptimedia, television will retain its first place, and its share in total investment will shift from 40.7% in 2010 to 41.8% in 2013. Meanwhile, Magnaglobal foresees a 6% growth in 2011, involving a total of 169.000 million dollars, and an average yearly 7.5% increase for the next five years.
Regarding newspapers and magazines a difference becomes apparent. According to ZenithOptimedia, investment in these written media will fall by 2% between 2010 and 2013, as they will suffer falls in circulation and a decline in the number of readers in the face of digital platforms. Magnaglobal indicates that they will grow at an average rate of 1.7% till 2016, in spite of the 0.7% they will experience next year, mainly in emerging countries where literacy is growing and Internet connections are not yet fully developed.
In addition, according to ZenithOptimedia, in the next few years they will have a 10% growth and public space advertising will have an 18% growth. Lastly, both reports agree that the Internet will be the highest growing media. A projection done by the Publicis Group agency shows that it will have a 48% growth in the next three years, while Magnaglobal indicates that in 2011 it will experience a 12.5% investment growth with a yearly growth of 10.6% till 2016.
Source: Señal Online







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