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Internet Adspend Likely To Grow For 2006

Internet Adspend Likely To Grow For 2006

Internet adspend will continue to outperform other media in Europe this year, with minimal growth expected to be the norm, according to the Initiative special report, Spheres of Influence, outlining global advertising expenditure in 2006.

The UK should see a total rise in advertising expenditure of 3.6% compared with a global average of 5.8%, and internet adspend in the UK should increase by 26%, with a worldwide increase of 27%.

Norway, Sweden and Ireland are all expecting above average growth in media spending, with Ireland reaching 7.9%, while Norway and Sweden achieve 7.4%.

The highest increase in satellite advertising spend in Western Europe will be a rise of 26.8% in Spain, following on from last year’s reduction of advertising breaks from 12 to 8 minutes, a move which is expected to boost demand.

However, January also saw new legislation banning tobacco advertising in Spain for radio, press, outdoor and cinema, which is expected to have knocked around €40 million off the amount spent on these platforms.

Central and Eastern Europe has seen the largest growth in media spend of any region for the last five years, and that trend is set to continue in 2006, with the internet showing the largest growth of all media at 42.4%.

Dirk Wiedenmann, COO Europe, Initiative Hamburg, said: “2006 will be a year of minimal growth in Western Europe’s media landscape. The only medium where this the expected growth is substantial is the internet. The reason: people are increasingly using broadband and spending more and more time online. This shows that the digital revolution continues to change people’s media habits.”

Global Ad Expenditure Increase (2006 v 2005) 
EMEA    
Arabia 24.7%
Austria 5.3%
Belgium 1.4%
Bulgaria 13.0%
Croatia 5.3%
Cyprus 13.2%
Czech Republic 2.7%
Denmark 5.0%
Estonia 11.7%
Finland 2.3%
France 3.8%
Germany 2.6%
Greece 1.3%
Hungary 7.0%
Ireland 7.9%
Israel 8.6%
Italy 2.5%
Latvia 16.5%
Lebanon 0.0%
Lithuania 10.7%
Netherlands 1.3%
Norway 7.4%
Poland 6.7%
Portugal 0.9%
Romania 20.1%
Russia 25.4%
Slovenia 5.7%
South Africa 10.4%
Spain 5.8%
Sweden 7.7%
Switzerland 3.4%
UK 3.6%
Ukraine 40.4%
Americas    
Argentina 7.0%
Brazil 10.3%
Canada 6.1%
Chile 5.5%
Colombia 5.6%
Ecuador 19.5%
Mexico 15.0%
Peru 5.6%
Uruguay 9.2%
USA 4.5%
Asia & Australasia    
Australia 3.5%
China 18.4%
Hong Kong 16.0%
India 15.5%
Indonesia 15.0%
Japan 1.0%
Malaysia 3.1%
New Zealand 7.0%
Philippines 17.9%
Singapore 3.9%
South Korea 6.4%
Taiwan 2.0%
Thailand 8.3%
ALL MARKETS  5.8% 

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