Global advertising growth is steady and in line with the global economy at 5.3% for 2006, and set to be 5% for 2007, according to GroupM’s latest media and marketing forecast report.
Television has taken half of all global media investment growth, whilst the contribution of the Internet to global media growth will rise to 28% in 2007 from 27% in 2006.
In Latin America, Eastern Europe and emerging Asia, Television accounts for between 60%-75% of all new media dollars, whilst in the west, audience fragmentation is giving advertisers tighter targeting at stable or falling prices.
The Internet currently accounts for 6% of global advertising, and including search in all major markets, this increases to at least 8% and is adding a point each year. On this basis, GroupM conservatively predicts that the medium’s share is 14% in the UK and 12% in the US.
The report suggests that globally Radio is set to drop from 6% to 4% of all advertising expenditure next year, whilst Newspapers will rise 1% to 6% in 2007, Cinema and Outdoor will remain static at 1% and 7% for 2007 respectively.
| Advertising Revenue (US $million) |
| |
2005 |
2006 |
2007 |
| North America |
156,960 |
161,464 |
165,404 |
| Latin America |
16,209 |
19,271 |
21,259 |
| Western Europe |
97,221 |
99,720 |
103,551 |
| Emerging Europe |
12,008 |
14,240 |
16,383 |
| Asia-Pacific |
85,155 |
92,093 |
99,145 |
| Middle East & Africa |
7,300 |
7,753 |
8,344 |
| World |
374,853 |
394,542 |
414,086 |
| Source: GroupM, December 2006 |
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|
|
| |
| Year-On-Year Percentage Change |
| |
2005 |
2006 |
2007 |
| North America |
3 |
3 |
2 |
| Latin America |
20 |
19 |
10 |
| Western Europe |
4 |
3 |
4 |
| Emerging Europe |
20 |
19 |
15 |
| Asia-Pacific |
7 |
8 |
8 |
| Middle East & Africa |
11 |
6 |
8 |
| World |
5 |
5.3 |
5 |
| Source: GroupM, December 2006 |
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