Carat published its first forecasts for worldwide advertising expenditure in 2014, combined with its latest forecasts for 2013 and 2012.
Based on data received from 57 markets around the world, Carat predicts further positive momentum for global advertising expenditure in 2014, increasing by +5.0% compared with the latest 2013 forecast of +3.7%. Positive growth is forecast across all markets and regions in 2014, including Western Europe which, following two consecutive years of decline is expected to return to growth as it benefits from the increase in multi-platform opportunities and the resulting increase in digital spend.
From a global perspective, growth in advertising spend continues to be led by two of the original BRIC economies of Russia and Brazil who are forecast to continue delivering double digit growth in 2014, also benefiting from host nation status for the prestigious Winter Olympic Games and FIFA World Cup respectively.
By category, in line with expectations, the data also shows investment in Digital advertising, increasing its share of global advertising spend by approximately +2% each year. Predicted to command +20% of the overall global advertising spend by 2014, Digital advertising is already the leading advertising medium in the UK, the Netherlands and Sweden.
Commenting on the Carat forecasts, Jerry Buhlmann, Chief Executive of Aegis Group plc, said:
“Carat’s latest advertising forecast gives us increased optimism for the outlook for global advertising spends, particularly for 2014. For some markets the journey will remain challenging as the economic trend of two-speed world continues, with lower growth in Western Europe and North America and higher growth in the faster-growing regions of Asia Pacific and Latin America.
“As expected, the trend of audiences moving online continues and with digital advertising comes greater accountability. So while television remains the dominant medium it is clear that the advertising businesses which can innovate and implement truly cross-platform converged communication plans, combining online and offline campaigns will be the most successful and deliver the best results for clients. Evolving and challenging, the advertising industry is never anything but exciting.”
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