Global Adspend Grew Just Over 4% In Q1

In the period from January to March 2008, ad spending in Africa grew by over 16%, and the Asia Pacific region recorded almost 10% growth. In the more developed regions of North America and Europe, growth was considerably slower – North America’s ad spending figures climbed by just 1% and remained flat in Europe (-0.4%). As a result these two regions lost one point of share respectively to Asia Pacific.

North America experienced slight total growth (1.2%), despite a softening US economy and the recent Writers’ Guild of America strike.

Of the three regions surveyed, Asia Pacific showed the most growth across the quarter, registering 10%. All four major media types (television, magazines, print and radio) contributed to this growth. This region is expected to benefit further from economic development in fast-growing Asian markets.

The advertising market in Europe remained flat over the first quarter of 2008. Television, which accounts for almost 50% of total European advertising spend, is the only media type showing positive growth (2.2%). The slow economic growth of many European markets and the effects of economic uncertainty have had an impact on advertising trends across the region, however there is an expectation that the recent UEFA European Football Championship and the upcoming Olympic Games will have a positive influence on advertising spend in the second half of the year.

According to Nielsen experts in Germany, the first three months of 2008 saw almost 30 million Euros being invested in campaigns with a direct or associated reference to the UEFA European Football Championship in that country.

South Africa’s advertising market grew 15.3% over the quarter. As usual, television and print have the lion’s share, but internet advertising is gaining momentum in this market, growing by a whopping 67% across the three-month period.

Television remains the highest-grossing medium for advertising spend, recording a 6.9% yearly growth rate globally and growth in every region. Television currently accounts for 60% of global ad spend. Newspapers, representing almost 24% of spend, remained flat (0.4%) and Magazines showed a slight decline globally (-0.9%).

IDC’s Digital Marketplace Model and Forecast predicts that worldwide spending on internet advertising will total $65.2 billion in 2008, representing nearly 10% of all ad spending across all media (see Global Online Adspend To Total $65.2bn In 2008).

IDC projects 15-20% annual growth throughout the forecast period, with this share reaching 13.6% by 2011 as internet ad spending grows to $106.6 billion worldwide.

Meanwhile Magna forecast that worldwide advertising spending will rise 4.4% this year, with the UK forecast to see 3% growth (see Global Adspend To Grow 4.4% This Year).

Adspend in the US is predicted to rise 2%, with growth in most developed industrialised countries expected to be quite modest.