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13.10.2010 Global adspend posts double-digit rise

Advertising expenditure posted double-digit growth during the first half of this year, according to new global figures. Research firm Nielsen reported thatworldwide adspend reached $238bn in the opening six months of 2010, a 12.8% uptick year-on-year based on ratecard estimates. Overall, 35 markets from the 37 assessed enjoyed an expansion, with the UAE off 5.8% and Ireland down 3.2%. Latin America experienced a 44.5% surge, totals standing at 23.8% in the Middle East and Africa (MENA), 12.1% for Asia Pacific (APAC), 8.5% in Europe and 4.7% in North America. In Europe – responsible for a 23% market share, equalling North America – returns rose 11.6% in France, 9.5% in Germany and 10.7% in the UK, while Spain was essentially flat.

Asia Pacific now accounts for 38% of worldwide advertising sales, as India grew 32%, with Hong Kong up 23%, one percentage point ahead of both Indonesia and Malaysia. In more advanced regional economies, demand rose by 8% and 9% in Australia and New Zealand respectively. FMCG brands heightened their outlay by 21.4%, with auto manufacturers delivering a 20.7% improvement, financial services recording a 19.9% jump and durables rising 17.3%. Growth rates stood at 11.1% regarding industry and services, 10.7% concerning telecoms and 9.8% in the apparel and clothing sector.

Carmakers in the US boosted spending by 17.3%, making this the fastest-growing sector in the region, a status assumed by fashion specialists in Europe, raising expenditure by 14.9%. Durables yielded a 29.7% enhancement in Asia Pacific, Latin American financial services groups furthered their outlay by 73.9% and telecoms witnessed a 38.7% increase across the Middle East and Africa. By media, television controls 62% of all advertising revenue, up 1% on an annual basis, and saw returns climb 15.8% during H1 this year. Radio sales rose 11%, newspapers experienced a 9.5% expansion and magazines generated the slowest improvement, at 3.7%, including a 2% contraction in North America. Nielsen also stated that Q2 ad revenues were up 12.9%, despite a slight slowdown in acceleration in APAC and Latin America.

B.L. 13.10.2010