Things You Should Know About the Global Ad Market

Advertising trends in 2014 have taken a positive turn globally and the outlook is quite optimistic. Moreover, ad spending is being considered globally and spending on the same is considered by advertisers. Here are 10 definite points that should be thought over about the global advertising market:

Insights gleaned from a forecast that Publicis Groupe's ZenithOptimedia is releasing today:

Global ad spending is rapidly gaining pace. While worldwide spending was about 3.6% in 2013, this trend will see a substantial rise of about 5.3% in 2014 and 5.8% in 2015 and 2016. In other words, the ad market is all set to match its pre-recession growth rate of 5.4% in 2007, the next year.

Ad spending in 2013 is going to top $500 billion for the very first time because of the rise in global spending. Well, that is precisely $90 for every individual living in the markets which has been tracked by ZenithOptimedia.

Spending in the U.S. for global advertisements is going to remain below the pre-recession levels. There won’t be a chance that the U.S. passes its 2007 ad spending peak of about $178 billion. Well, this may be the situation till 2015. However, this does not mean that U.S. does not have an ad growth. In fact, ZenithOptimedia predicts that there will be a whopping 4.7% increase in 2014 which is incidentally the fastest growth since 2004. What’s more! It expects a robust increase of 4.6% and 4.1% in 2015 and 2016 respectively.

Worldwide Ad Spending by Medium

TV remains the world’s largest ad spending medium. However, what needs to be noticed is that internet took over the newspapers’ position and emerged as the second largest advertising medium in 2013. Currently, the internet captures one in five ad dollars. In 2005, internet ranked 6^th in the global ad media and it rocketed past all mediums like newspapers, magazines, radio and outdoor.

With all regions showcasing an increase in the ad spending, Latin America has been the fastest-growing region since 2013 and is expected to maintain its leading position through 2016. This region is expected to have a significant growth of 8.1% in 2013 to 12.7% in 2016. In the Asia Pacific region, the spending has a single digit gain in the range of 6% to 7% till 2016. The Western Europe is expected to have a modest growth of 1.9% to 2.3% both in 2015 and 2016, which is actually following declines in 2012 and 2013.

China is a great hot spot for ad spending. It has always been growing and will continue to do so by 10% through 2016. It ranks 3^rd, following U.S. and Japan in the ad market and is known to have the fastest growth amongst the world’s largest ad markets. Fast food selling brands like KFC spend about 32.8% of its measured media spending in China in 2012. Apart from this, energy drink marketer Red Bull also placed 27.5% and the watch brand of Swatch Group placed 24.1% ad spending in China.

BRIC bloc is ascending. Russia is expected to position itself as one of the ten largest ad markets in 2015 along with China and Brazil. India on the other hand, which is on the No.14 spot, will witness a 39% growth in 2016, making itself on of the 10 fastest-growing countries for advertising

 View the Global 100, a ranking of the 100 Largest Global Marketers by measured-media spending.

Facts from Ad Age's Global Marketers report:

The United States has 41 of 100 largest global marketers. Europe follows by being headquarters for 36; Asia has 23. Amidst the 100 marketers, 94 did advertising in U.S. only six firms had no measured media spending. Two telecoms- France’s Orange and U.K.’s Vodafone, which is basically selling 45% of its stake in Verizon Wireless to the Verizon Communications and two French automakers - PSA Peugeot Citroën and Renault and France's Carrefour, one of the world's biggest retailers; and Hong Kong's Hutchison Whampoa, which owns telecom ventures, ports and other holdings.

Spending on technology is rapidly gaining pace. Consumer electronics and technology is the fastest growing industry amongst the Global100. It has shown a 9.6% increase in 2012 with measured media spending. Samsung Electronics, who’s measured spending showed an enormous 55.1%, was the highest growth among the Global100.

Personal care marketers have also made a considerable impact over the ad spending. It makes about one fourth of the total Global100 spending. Advertisers from Procter& Gamble Co., Unilever and L’Oréal are the biggest global advertisers.