Carat forecasts full market recovery next year
Media communications agency Carat has today published its updated forecasts for worldwide advertising expenditure in 2013 and 2014 – revealing continued positive momentum for global advertising expenditure in 2013 and 2014.
Based on data received from 57 markets around the world, Carat predicts global advertising expenditure will grow by +3% in 2013, a slight decline from the +3.7% predicted in March 2013.
Meanwhile, global advertising spend forecast for 2014 will grow by +4.5%, also down fractionally from the previous forecast of +5.0% in March 2013.
Predictions for 2013 are lower than previously forecast due to a slower upturn of the global economy say the report’s authors. However, the expectation of market recovery to positive growth in all regions in 2014 is predicted.
After two consecutive years of market decline, Western Europe is predicted to experience a slow and gradual recovery even in markets registering double digit decline in 2013, such as Greece and Portugal.
Confidence in the post-Olympics UK economy is reflected in the country’s strong performance and resulting in an increase of +3.6% year-on-year growth in 2013, rising to a predicted +5.0% in 2014.
By media, Digital spend continues to outpace all other media with the highest year-on-year growth rate of +15.6% in 2013, more than +10% higher than any other media and a trend which is expected to continue as emerging markets, such as Brazil adopt a more digital approach.
“Carat’s latest ad spend forecasts highlight the positive momentum and global growth for 2013, a year which has proven extremely challenging for some markets to maintain their 2012 ad spend levels,” said Jerry Buhlmann CEO of Aegis Media and Dentsu Aegis Network.
“In parallel to this, the new trend of a three-speed world is reinforced, with the rates of growth in the faster growing markets remaining ahead of steadily recovering markets, such as the US, followed by the struggling Eurozone markets.
“Looking ahead, Carat’s forecasts do, however, predict that we are at a significant point of change with all regions expected to see a steady recovery in 2014, even those currently experiencing deep declines for 2013.”