Carat has forecast that worldwide global advertising expenditure will increase by 3.9% this year.
By comparison, in March 2010 Carat predicted that it would increase by only 2.9%
Predictions for 2011 are of an increase of 4.7%, compared to the 4% increase predicted in March.
However, even with this growth, the global advertising market is expected to be the same as 2006 levels.
Online growth is expected to accelerate by 13.5%, and the fastest growing sectors are predicted to be retail, FMCG, beauty & healthcare, and food.
Public sector spend, along with travel and entertainment sectors, is expected to decline.
In terms of the UK market, Carat predicts growth of 2% to 3% in the second half of the year, increasing its 2010 forecast to growth of 3.5%, and its 2011 forecast to continued growth of 4.1%.
Commenting on the forecasts, Jerry Buhlmann, Chief Executive of Aegis Group plc, said:
“Carat’s revised global forecast adspend for 2010 and 2011 is further evidence of a rebound in advertising markets.
“The indications are that global spending this year will rise by 3.9%, a 1% upward revision from the forecast of six months ago, which is a further signal of an increasingly optimistic environment.
“Overall, while the short term economic outlook remains uncertain, these forecasts are an encouraging sign.”
