Higher spend­ing to keep in­dus­try on track

China Daily (Canada) - - BUSINESS - ByWANGZHUOQIONG

Ad­ver­tis­ing ex­pen­di­ture in China will con­tinue to grow at a steady clip, and post year-on-year growth rates of over 8.3 per­cent in 2015, com­pared with 7.4 per­cent in 2013, Carat, the leading global me­dia net­work owned by Dentsu Aegis Net­work, says in its ad­ver­tis­ing ex­pen­di­ture fore­cast in 2015.

That is in ac­cor­dance with the global trend of con­tin­u­ous growth in ad spend­ing. The Carat re­port also shows that global ad­ver­tis­ing rev­enue is ex­pected to surge 4.8 per­cent year-on-year to $551 bil­lion this year.

This is an up­ward re­vi­sion to the 4.5 per­cent fore­cast in the pre­vi­ous Carat Ad­ver­tis­ing Spend re­port is­sued in Septem­ber 2013 and a no­table in­crease on the ac­tual 3.3 per­cent growth in 2013, said the re­port based on data col­lated from 59 mar­kets across the world.

Carat pre­dicts that global ad­ver­tis­ing ex­pen­di­ture in 2015 will con­tinue to be ro­bust with an an­tic­i­pated 5 per­cent year-on-year growth around the world. The data also in­di­cates that the era of dou­ble-digit de­cline in some parts of Western Europe is over and some mar­kets in­clud­ing Italy, which had de­clined by 10.3 per­cent in 2013, are head­ing for pos­i­tive growth by 2015.

In the me­dia sec­tor, dig­i­tal spend­ing has been in­creas­ing at a more rapid pace, with global growth rate ex­pected to be around 15.5 per­cent this year. Dig­i­tal me­dia will out­per­form all other me­dia and will be the only me­dia sec­tor that will ex­tend its mar­ket share based on 2014 and 2015 pre­dic­tions.

In the United King­dom, Den­mark, The Nether­lands, Nor­way and Swe­den, dig­i­tal me­dia has al­ready be­come the main driver for me­dia sec­tor growth.

Jerry Buhlmann, CEO of Dentsu AegisNet­work, said that the pre­dic­tions echo the in­creas­ingly pos­i­tive eco­nomic sen­ti­ment they are hear­ing from in­dus­try-leading clients and part­ners.

“With 2014 look­ing brighter than we pre­vi­ously an­tic­i­pated and fur­ther mo­men­tum gath­er­ing in 2015, the out­look for ad­ver­tis­ing ex­pen­di­ture is healthy,” he said.

Dig­i­tal growth ac­counts for three times the to­tal growth, and the seis­mic trends within the dig­i­tal busi­ness are caus­ing a con­ver­gent me­dia revo­lu­tion, ac­cord­ing to Buhlmann. So­cial, mo­bile and video will all grow by at least 50 per­cent in 2014 through de­vel­op­ments in pow­er­ful tech­nol­ogy, ac­cess to in­for­ma­tion and in­creas­ing con­sumer trust.

Whilst the pro­lific sport­ing events in­clud­ing the Win­ter Olympics in Sochi and the World Cup in Brazil will con­tinue to drive TV ad­ver­tis­ing spend in 2014, the gold medal win­ners will ul­ti­mately be the dig­i­tal world, he said.

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