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The Guardian - UK
The Guardian - UK
Business
Roy Greenslade

BRIC countries lead advertising growth

Russia and India will record the strongest growth in advertising spend over the coming year, according to the latest Warc international ad forecast.

It predicts that Russia will increase expenditure by 16.5%, followed by India (14.0%), China (11.5%) and Brazil (8.5%).

The picture is very different outside the BRIC quartet, especially in Europe, where three countries - Germany (1%), France (0.8%) and Italy (-0.2%) - are now expected to record the worst year-on-year performances.

All three economies are facing the possibility of renewed recession due to the eurozone debt crisis.

Taking into account the likelihood of inflation, all three countries are likely to see a decline in advertising spend in 2012.

The forecast for the UK is more positive, with predicted growth of 4.2%. But Warc, the marketing intelligence service, points out that the figure will be boosted by two sporting events - the London Olympics and European football championships.

As for the United States, which is forecast to see a 4.1% increase in ad spend, its TV broadcasters will undoubtedly benefit from the presidential election.

Indeed, across all 12 countries covered by the survey, TV is predicted to increase its share of main media advertising, growing by 5.3% compared to the overall media total of 4.5%.

As for online advertising, the pace of expansion is expected to slow to 12.6% this year, down from an estimated 16.6% in 2011.

The internet is expected to account for 20% of all media spend by the end of 2012.

Warc's data editor, Suzy Young, said: "With continuing debt worries affecting mature markets and knocking business and consumer sentiment, it is no surprise that 2012 adspend growth will come from emerging markets.

"Without the support from the presidential election and major sports tournaments, the outlook would have been even worse. But there are some bright spots in the data, with TV's performance looking particularly encouraging."

Source: Warc

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