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Digital ad spend to overtake print in 2013

19 March 2012
Digital ad spend to overtake print in 2013

Global digital ad spend is set to rise 16.5% this year and 13.5% next year, taking its total share of ad spend to 15.5% in 2013 and overtaking newspapers’ (14.3%) share for the first time, according to Carat.

Carat has kept its forecast for 2012 global ad spend static at 6%, with ad spend stimulated by the US Presidential Elections, London 2012 Olympics and the UEFA European Football Championship.

Global growth will remain robust through to 2013 at 5.8%, despite the lack of major events.

“Carat’s latest ad spend forecasts are really encouraging,” says Aegis Group chief executive Jerry Buhlmann. “Not only do they confirm our expectation for robust growth through 2012, but they also show that the global market is expected to build on that strong performance in 2013 with further growth – and in a year with no major events.”

2013 will mark the year that global investment in digital advertising will overtake newspapers for the first time, fuelled largely by consumer appetite for online video, social media and the increasing penetration of mobile internet access.

TV is expected to see continued growth, up by 5.5% this year and 5.3% next year, bringing its total share to 45.7% in 2013.

For North America, 2012 ad spend is predicted to grow 5.0%, down from the 5.5% prediction in August 2011, and 4.3% growth in 2013.

Western Europe will continue to suffer, with Carat slashing its 3.0% prediction in growth in August to just 1.5%. However, this is expected to pick up again in 2013 to 2.2%. For 2012, the UK (+4.0%), Germany (+1.2%), France (+1.5%) and Italy (+1.2%) will see growth in ad spend, while Spain is forecast to experience a 4.7% decrease in growth.

For the Central and Eastern European countries, ad spend is forecast to grow 9.5% in 2012 and 9.0% in 2013.

The BRIC advertising markets will continue to outstrip the performance of the developed economies, with ad spend in Latin America to rise 10.7% in 2012 and 8.2% in 2013. Ad spend in Brazil will grow 10.5% this year and 8.0% next year, according to the forecast.

Asia-Pacific has emerged as the best performing region, with the growth in ad spend set to increase 8.7%. This was the only region where the forecast in growth was higher than earlier prediction made in August 2011. China will see the biggest growth at 14.7% in 2012 and 14.6% in 2013.

“In these times of rapid change, global advertisers are increasingly choosing to work with those best-adapted to these dynamic markets to support them in re-inventing the way brands are built,” says Buhlmann. “The successful players aligned behind these trends with focused and specialist offerings can look to the future with confidence.”

Jenni Baker, London


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