Skip to main content

The Worldwide Market Outlook for Advertising Spend


As 2012 comes to a close, marketers can reflect upon the results of their significant ongoing advertising spend. Most will maintain the status quo by sinking the vast majority of their budget into advertising. That's good news for the troubled legacy media industry.

Despite the global economic slowdowns, the media advertising sector is expected to continue growing for the next several years -- driven especially by increased spending within the emerging markets around the globe.

eMarketer estimates that total media advertising spend worldwide has risen by 5.4 percent in 2012 -- to just under $519 billion -- that's compared to the 2011 increase of just 3.6 percent.

Spending on adverting will continue to climb at a similar pace throughout eMarketer’s forecast period, which extends through 2016. By that year, eMarketer now forecasts that worldwide media ad spending will top $628 billion.

The fastest growth will come from Latin America, where ad spending was already up by 11 percent this year to $34.66 billion. Furthermore, by 2016, ad spending in Latin America will reach $51.33 billion.

eMarketer believes that Asia-Pacific, Eastern Europe and the Middle East and Africa will also enjoy higher-than-average growth rates, while growth in North America and Western Europe will be significantly slower. This year, Western Europe has struggled to grow ad spending at all, with several major countries posting spending declines.

U.S. ad spending is estimated to rise 4.9 percent this year to $166 billion, which is ranked number one in the world. eMarketer predicts that 2016 spending levels will be near $190 billion. While eMarketer says that their U.S. growth projection is relatively bullish, the forecast of absolute spending is comparatively conservative.

The second ranked country in the world in terms of ad spending is Japan. But China is now forecast to surpass Japan in 2014. China, the third-largest ad market in the world, is growing ad spending much faster than mature markets -- such as the U.S. or Japan.

eMarketer estimates ad spending in China is up 13 percent in 2012. eMarketer also predicts double-digit ad spend growth rates in this massive country through the rest of the forecast period, which will help boost Asia-Pacific and worldwide increases.

As the biggest ad spender in Europe -- the fourth ranked market in the world -- Germany will post near-flat growth of 1.5 percent in 2012, with spending reaching $27.7 billion. This slow growth will continue in Germany throughout the forecast period.

The 2012 Olympics host nation had a relatively good year overall. Ad spending growth in the UK was somewhat better, and closer in line with U.S. growth rates. eMarketer estimates UK spending will have reached $24 billion in 2012.

eMarketer forms its forecasts of worldwide ad spending through a bottom-up approach, based on a country- and region-level meta analysis of various elements related to the ad spending market -- including macro-level economic conditions, historical trends of the advertising market, estimates from other research firms, and consumer media consumption trends.

Popular posts from this blog

IoT Device Management Demand Gains Momentum

More forward-thinking CIOs and CTOs are focused on the adoption of the Internet of Things (IoT). Management challenges are top of mind for those who have already deployed a large number of sensors and associated network edge devices. Device management services are evolving in response to a greater breadth of new device technologies such as edge intelligence and related connectivity solutions, as well as the customer scalability and security of IoT deployments. But forward-looking suppliers are also preparing for a world where 41.3 percent of the connected devices will be using some form of Low Power Wide Area (LPWA) technologies by 2026. IoT Device Management Market Development Since IoT customers increasingly need to manage a larger fleet of connected devices, ABI Research now forecasts that IoT device management services will exceed $36.8 billion in revenues by 2026. Standardization is beginning to play a bigger role in device management services, as more connected devices use LPWA t

Anywhere, Anytime Workplace Demand for SASE

The ongoing adoption of flexible working models within the enterprise market has significant implications for typical IT organizations that must now support knowledge workers and front-line employees that operate outside the corporate network perimeter. The global COVID-19 pandemic created IT networking and security challenges. The expansion of the distributed workforce, an increasing reliance on cloud computing infrastructure, and the requirement to securely connect online employees -- wherever they choose to work, at any given moment in time. Legacy IT solutions that have rigid network underlays and a requirement for on-premises infrastructure cannot adequately deal with these trends. This 'Anywhere, Anytime Workplace' led to demand for new Secure Access Service Edge (SASE) solutions, with networking and security delivered as-a-service. Anywhere, Anytime Workplace Market Development   Although converging networking and security capabilities offer enterprises a promising solut

Cloud Edge Computing Demand Continues to Grow

Public cloud computing solutions are moving closer to the edge of networks where CIOs and CTOs are hosting new apps. The edge journey is well underway for forward-looking organizations as they seek to connect with customers, improve operational efficiency, and adopt digital business technologies to drive innovation. The latest worldwide market study by International Data Corporation (IDC) found that three-quarters of organizations plan to increase their edge computing spending over the next two years with an average increase of 37 percent. A combination of factors is driving this increased spending at the edge. Cloud Edge Computing Market Development The performance requirements of expanding workloads and new use cases that leverage artificial intelligence (AI) and machine learning (ML) demand greater compute capacity at the edge. In addition, the amount of data being stored in edge locations are rapidly expanding, and organizations plan to keep this data longer. As a result, the numbe