UK adspend expected to grow a healthy 7.5% this year
Carat has today published its updated forecasts for worldwide advertising expenditure in 2014 and 2015, with market optimism demonstrated through strong global growth and regional forecasts.
Based on data received from 59 markets across the Americas, Asia Pacific and EMEA, Carat's latest forecast shows overall global advertising revenues accelerating by 5% in 2014, an increase on the 4.8% predicted in March 2014, while year on year growth for 2015 is predicted at 5%.
From a regional perspective, Carat predicts further positive momentum in 2014 for North America and Western Europe, with levels of adspend in North America expected to exceed the pre-recession peak in 2007 for the first time by the end of 2014.
Western Europe is predicted to see a return to positive growth of 2.7% after two consecutive years of declining in adspend, driven by a strong UK advertising market forecast to grow by 7.5% this year.
While forecasts show a slight decline in growth when compared with predictions from March 2014, Asia Pacific and Latin America are still both forecast to outperform global predictions, with growth rates for 2014 of 5.4% and 12.1%, respectively - the only regions to see double digit growth in some markets.
By media, digital outperforms previous predictions for 2014 with year on year growth forecast at 16.1%. Digital is also expected to increase its total share of spend, reaching 20.5% in 2014 and 22.6% next year, when it will outpace the combined magazines and newspaper global share for the first time.
While a steady decline in print is expected to continue, all other mediums are predicted to achieve year on year growth of approximately 3-5% in 2014 and 2015.
"With the global recession further behind us and a healthy trend of 5% year-on-year global ad growth, there is positive momentum building across the industry," said Jerry Buhlmann, CEO of Denstsu Aegis Network.
"Whilst digital continues to headline market trend discussions, the components within this dominant media now provide the interesting chapters, with the opportunities in mobile leading the debate. With changes and trends in consumer behaviour driving business opportunities, brands need to deliver innovative and integrated solutions to reap the rewards ahead."
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