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Growth Sign for Media Industries

Friday, July 22, 2011

The economics expect the slight increase in domestic and global as spending, after the world's economies facing down one crisis after another: Japan earthquake; Arab spring; Greek collapse; China inflation; India corruption. Despite these contractions, , the global economy is now being sustained by emerging nations like Russia, Brazil and, in yet another sign of its significance, China, though not quite as much as one would think. ."From our last focus from April, our expectations slightly increased in most regions," said Jonathan Barnard, head of forecasting at ZenithOptimedia, who anticipates global ad spending to rise 4.2% this year, down a bit from an earlier forecast due to the earthquake in Japan and the uprisings in Middle East states. , Mr. Barnard estimated global ad spending would have been slightly higher, up to 4.7% or 4.8% this year.

As the U.S., Western Europe and Japan lag in spending, global growth in advertising over the next few years will be driven by emerging markets, with China accounting for $10.79 billion in new ad spending from 2010 to 2013 compared to Russia's $6.88 billion and Brazil's $3.32 billion.Total global ad spending will grow by $73.6 billion in the same period, and the U.S. is expected to account for 19.3% or $14.24 billion in new advertising outlays, making it the biggest spender by far, while at the same time representing a 3% to 4% annual growth rate. Mr. Barnard said. "We expect that in a market like China, at some point advertising should be around 0.7% or 0.8% of GDP, but in China it's 0.4% and we're projecting it will be at around 0.43%% into 2013, so that's hardly explosive growth."Even as China is expected to be the second-biggest contributor of new ad dollars through 2013.

Measured global advertising has recovered nearly all the dollars lost in 2009, compared to Russia's $6.88 billion and Brazil's $3.32 billion.rt, which also said the recovery has been broad-based with spending increases reported in categories including toiletries and cosmetics, automotive, beverages, retail, financial services, entertainment, and food, among others. Significantly, the report said measured internet advertising is expected to contribute 37 percent of global ad growth in 2011 and is likely to reach $82 billion, a growth rate that suggests it will overtake newspaper spending (forecast at $90 billion in 2011) at some point in 2012.

Nations expected to contribute the largest dollar amounts in 2011 ad spending growth are the U.S. and China, each with at least $5 billion, followed by Canada, Russia, Indonesia, India, Brazil and Japan, each expected to add $1 billion-plus in spending growth. The U.S. market, which faced six straight quarters of declines in ad spending, has seen a turnaround in 2010. In total, advertisers spent an estimated $54 billion during the first half of 2010. The increase in U.S. advertising reflects a modest improvement in U.S. consumer confidence in the first half of the year, as advertisers look to highlight value deals and increase promotions in the hopes of spurring consumer spending.

The advertising spending in India is likely to see a growth of 12-14 per cent over the next few years, predicts a new report by Deloitte. The study titled ‘Technology, Media and Telecommunications (TMT) Predictions India 2011’ has linked the growth to satellite and cable television which is making a greater impact in the semi-urban and rural markets of the country. The report pointed out that, with tele-density of 128 per cent in urban areas, it is the rural markets which will now be the focus of operators for services as varied as television and healthcare. The rural market with a tele-density of 26 per cent is believed to be holding a greater potential. Further it has been predicted that traditional print media will reserve second position after TV. Their would be a steady growth in newspapers and their will also be a growth in magazines and supplements focussing on finance, health, real estate, and entertainment related topics

Strong advertising spend in Brazil, Russia, India and China (BRICs) will spur the international advertising economy to faster growth in 2012, according to a new forecast from Warc (, the global marketing intelligence service. North America will remain the biggest market for television advertising, helped by mobile TV, online streaming sites, high-definition TV and other new technologies