Global Marketers to Fuel Online Advertising Growth for 2011

The global ad market is in recovery and analysts are looking for a growth rate of 4.5% over 2010 levels. As in the U.S. , the big story for the global ad market is online. Analysts say that the growth in this format, on a global basis, will reach 16%.  However, online market is still not close to catching up with the number one media format: TV. Especially in emerging nations, TV will grow steadily and maintain its top position with 42% of all ad spending. At the same time, the World Association of Newspapers believes that print will decline another 1% this year.

Detailed numbers by ZenithOptimedia  show how ad spending will be divided among media formats in 2011:

  • Television 42%
  • Newspapers 20%
  • Magazines 9%
  • Online 15%
  • Radio 6%
  • Outdoor 6%
  • Cinema 2%

The anticipated growth in global advertising has analysts predicting full recovery from the recession by next year. In either late 2011 or 2012, the annual spending on advertising will reach $500 billion. While the U.S. controls under half of the industry with projected ad spending of $214.3 billion in 2011, developing markets will have higher spending rates. In a blog post last week, I noted that Zenith Optimedia is expecting double-digit advertising increases in Brazil, Russia, India and China.

The ad market is looking strong once again but U.S. media space providers are encountering a changing world. Not only are consumers shifting the types of content they use, but the slow-growing domestic economy is commanding a shrinking share of the global market.
[Sources: Sweney, Mark. Global ad market. Guardian​.co​.uk. 6 Dec. 2010. Web. 11 Jan. 2011; Online advertising spending is growing face. The Economist. 4 Jan. 2011. Web. 11 Jan. 2011]

Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-owner of several small businesses in the health care services sector.