U.S. Ad Spending Increase Revised to 2.9% for 2014
Last year, GroupM analysts predicted that global ad spending would rise 5.1% in 2014. But the firm has pulled back a bit from that lofty projection. Global ad spending will likely increase only by about 4.6% this year and Medialife Magazine’s Diego Vasquez recently spoke with the firm’s Futures Director Adam Smith about what media providers can expect as we move through 2014.
GroupM notes that 2013 ad spending likely ended up at $508 billion which was a 3.3% increase over the previous year. If 2014 spending increases 4.6%, the outlay will total $531 billion. The forecast for the U.S. isn’t quite as positive. Analysts figure that we had a 1.8% rise last year, which brought us to $156.3 billion. This year’s expected 2.9% bump will lift that figure to $161 billion.
One surprising outlier in GroupM’s report is the anticipated 6% increase in ad spending in the UK – a region that has been struggling with economic issues recently. Smith notes that the UK has been able to increase hiring which is boosting the confidence of consumers to go out and spend. The firm also believes the economic engine in China will continue to drive ad sales with a 31% increase expected this year.
China is transitioning well to digital advertising which accounts for 24% of all spending in the country. Globally, digital media will take 21% (or $110 billion) of ad activity. This level marks a 14% rise over last year. These increases will chip away at print’s share of the market but TV is expected to remain stable at 45%.
As far as specific category increases go, Smith anticipates a rise in political spending. The automotive sector looks strong and he anticipates that online retailers, in particular, will fuel digital ad spending.
Marketers and publishers who are providing online media space and want to know more about their target audience, Online Shoppers, can check out the AudienceSCAN report available on the Research Store at ad-ology.com.