Global ad spend to be up 3.5% in 2010

Global advertising spending in measured media is expected to increase 3.5% in 2010 to $451 billion, revised up from a projected 1% growth six months ago in the most recent 70-nation forecast report from GroupM. If achieved, the dollar total equals the amount spent in 2006-2007, or in 2004-2005 when accounting for consumer price inflation.  The report also forecast a 4.5% global increase for 2011.

The study, “This Year, Next Year” is drawn from data supplied by parent company WPP’s worldwide resources in advertising, public relations, market research, and specialist communications. 

In the U.S., ad spending is expected to decline 1.3% in 2010 to $145 billion, down from the $147 billion spent in 2009, which represented a 7% drop from the previous year. In 2011, U.S. ad spend is projected to increase 2.5% to $149 billion.

As anticipated, countries in the so-called BRIIC nations (Brazil, Russia, India, Indonesia and China) contributed significant growth. China remains the world’s biggest contributor to ad growth in 2010, accounting for one in three of all net new ad dollars they expect this year, and one in five as the rest of the world catches up in 2011. Indonesia and India are the next biggest contributors from Asia. Their grouping of ‘new world’ countries accounts for 34% of the global economy this year and 30% of measured media investment. Digital advertising expenditures are also playing a key role in worldwide ad spend growth.