Ad Spending In U.S. Is Lagging Behind Worldwide Recovery
June 28, 2010 at 4:25 AM (PT)
Worldwide ad spending is anticipated to grow by 3.5% to $451bn in 2010, says media company GROUP M, matching the levels of investment in advertising before the financial crisis. U.K.'s THE TELEGRAPH reports the news isn't as good for the U.S., as "advertising spending in the U.S. is expected to fall 1.3% to $145bn this year, before recovering in 2011, when spending is projected to increase 2.5% to $149bn.
"The U.S. media marketplace clearly bottomed out earlier this year and we expect moderate growth in 2011 consistent with GDP improvement," said GROUP M Chief Investment Officer RINO SCANZONI. "Television and online spending will outpace other media as they lead with return on investment metrics."
The report predicts the so-called "BRIIC" nations (BRAZIL, RUSSIA, INDIA, INDONESIA and CHINA) will lead the recovery in 2010.
"CHINA remains the world's biggest contributor to ad growth in 2010, accounting for one in three of all net new ad dollars we expect this year, and one in five as the rest of the world catches up in 2011," SCANZONI added.