GroupM Lowers Global Ad Spending Forecasts
December 9, 2013 at 4:25 PM (PT)
GROUPM has lowered its worldwide advertising spending forecast for 2014 from a 5.1% increase to a 4.6% hike, due to "economic gridlock in the U.S. and a persistent financial crisis in the EUROZONE." The revised forecast was made in GROUPM’s biannual worldwide report, “This Year, Next Year,” which also predicted that 2013 worldwide advertising spending in measured media will hit $508 billion, a 3.3% increase over 2012 spending of $492 billion.
The 74-country forecast predicted that global ad spending in 2014 will increase 4.6% compared to 2013, representing $531 billion. In the U.S., the advertising investment in measured media grew 1.8% in 2013 to $156.3 billion, up from $153.5 billion the previous year. For 2014, the revised forecast predicted a 2.9% increase to $161 billion.
“Ad spending in 2014 will enjoy a slight bump thanks to the WINTER OLYMPICS in SOCHI, with spending coming mostly from existing budgets,” said GROUPM Chief Investment Officer RINO SCANZONI. “But overall we estimate only marginal U.S. growth on a comparable component basis.”
Digital media will continue to grow, accounting for 19% of measured ad spending globally this year ($97 billion) and 21% in 2014 ($110 billion), with respective growth rates of 15% and 14%. Those figures are comparable to the GROUPM forecast made earlier this year. Most of digital’s share growth came at the expense of print media (newspapers and magazines). Television’s share of overall global ad spending remains stable at around 45%.