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.
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 | |||
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 |