Global ad spend to jump 4.5% in 2010: GroupM

Share this article:

Global ad spending will increase 3.5% this year to $451 billion and 4.5% in 2011 to $471 billion, according to a forecast from media investment firm GroupM. Six months ago, the WPP Group-owned firm predicted only 1% growth for this year.

The forecast came after ZenithOptimedia upgraded its global advertising spending predictions for the next three years, predicting total increases of 2.2%, 4.1% and 5.3%, respectively. It also predicted Internet ad spending will take a greater portion of ad expenditures in the next three years.

However, the US will see a 1.3% decline in ad spending this year to $145 billion, according to GroupM's report. Domestic ad spending should then increase 2.5% to $149 billion in 2011, according to GroupM.

The agency added that television and online spending would outpace other media this year. The agency gathered the data from its parent company's advertising, market research, specialist communications and PR resources.

“The US media marketplace clearly bottomed out earlier this year and we expect moderate growth in 2011 consistent with GDP improvement,” said Rino Scanzoni, chief investment officer at GroupM, in a statement. A GroupM representative could not be immediately reached for comment.

Segments of the direct marketing industry are already seeing a rebound. Direct mail volumes grew in the first quarter of 2010, with further growth expected for the rest of this year, said Andrew Davidson, SVP of Mintel Comperemedia, a marketing intelligence firm.

“We projected 6.1 billion pieces of direct mail received by US consumers in the first quarter, and that was up from 5.3 billion at the end of last year,” he said. “That's a 16% increase.” 

Davidson noted that direct mail would not likely achieve volumes it experienced in the “boom years” before the recession, despite general ad spending forecasted to reach pre-recession levels.

“It's just a different world now,” he said, emphasizing that there is a renewed emphasis on integrated marketing that will carry growth forward.

Share this article:
You must be a registered member of Direct Marketing News to post a comment.

Sign up to our newsletters

Follow us on Twitter @dmnews

Latest Jobs:

More in News

De Quinto Tapped as Coke's Next CMO

De Quinto Tapped as Coke's Next CMO

The president of the company's Iberia Business Unit will take over from Joe Tripodi upon his retirement in February.

Customer Centricity Is Spurring Marketing-Tech Investments

Customer Centricity Is Spurring Marketing-Tech Investments

A majority of marketers rank customer satisfaction improvements as paramount in the technology investment decisions.

Big, Bold Moves in the C-Suite

Big, Bold Moves in the C-Suite ...

JCPenney appoints Home Depot's Marvin Ellison as CEO; Harte Hanks and JWT add hitting power to their C-level benches