... year-on-year adspending worldwide will increase 5.3%, representing an expenditure uplift of $533.2 billion versus 2012.
The revised spending forecast was made in GroupM’s biannual worldwide report, This Year, Next Year, which also said that 2011 advertising spending in measured media hit $482 billion, a 5% increase over 2010 spending of $459 billion.
For the US market, the report predicts advertising investment in measured media will grow 3.6% this year to $152.5 billion, down from 4% growth projected in the previous report, issued December 2011.
For 2013, the latest report predicts a 3.1% increase in US media spending, totalling $157.2 billion.
Comments GroupM Chief Investment Officer Rino Scanzoni: “We attribute the decline in US ad spending to a number of factors, including a loss of economic momentum, the global deterioration from all continents but particularly the Eurozone and political and fiscal uncertainty at home for the election and beyond.”
Ad investment in the Eurozone periphery (Greece, Ireland, Italy, Portugal and Spain) fell 6.0% in 2011 and is expected to fall a further 8.8% in 2012 before stabilizing at par in 2013.
But GroupM Futures Director Adam Smith stressed that this prediction “assumes an orderly normalization of the Eurozone.”
Smith said all digital spending trends are positive everywhere irrespective of local economic conditions. “Internet advertising is growing in every country, so powerful is its structural and evolutionary development.”
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