GroupM Lowers Its 2011 Ad Growth Forecast
July 7, 2011 at 4:04 AM (PT)
Another forecast has been revised mid-year, as GROUPM has lowered its forecast for 2011 ad growth globally, projecting volume to be $506 billion in spending. The earthquake in JAPAN was noted as a major cause of the slowdown.
MEDIAPOST reports, "In the U.S., 2011 spending should hit $148 billion, then rise another 4.2% next year, which would still keep the U.S. market's share around 30%, though it would be a bit lower than this year."
"It's highly unusual for natural disasters to measurably impact the totality of global advertising," GROUPM LONDON-based Futures Director ADAM SMITH stated. "However, the earthquake and subsequent tsunami in Japan was of this rare scale."
"Digital advertising spending accounts for 20% and more of measured advertising in countries where it is most developed, but it still has real growth potential, even in those nations," SMITH said. "A recurring theme from such countries is the commercial utility of behavioral targeting and Web video, even among traditional 'brand' or 'awareness' advertisers."