Telecom Industry Fueling Ad Spending Increases Globally

A few studies have come out recently that point to a global slowdown in ad spending by marketers both large and small. Analysts at both Warc and Ad-​ology have reported that the initial enthusiasm behind bigger ad budgets in 2012 has been tempered by global economic troubles, especially in the Eurozone and in Syria. A new report from Nielsen goes a step further and informs readers about which sectors are spending the most on advertising.

It turns out the U.S. is not the only country where telecommunications is powering ahead. The industry’s transformation into smartphones is fueling a huge increase in ad spending. This year, telcom  companies are allocating a 7.8% increase in ad spending around the globe. Other sectors which are pouring more money into 2012 ad campaigns include:

  • Distribution Channels 10.8%
  • Entertainment 5.0%
  • Financial 4.9%
  • Clothing and Accessories 4.4%
  • Media 4.3%

More moderate increases in ad spending are being seen in automotive (3.3%), fast-​moving consumer goods (3.7%) and healthcare (0.5% )categories. Only two macro categories have seen a decrease this year: The Durables group,  with a 2.6% drop, includes major appliances and furnishings, and the Industry and Services group, with a 2.2% drop,  includes business services and utilities.

Nielsen analysts point out that in the North American market, healthcare ad spending has actually seen a 3.6% drop while automotive spending has hovered at a 2.9% increase. For a really big jump in ad spending, it's hard to beat the 8.6% increase in the financial sector. It's in this sector, along with telcom, that media companies can find advertising gold.

[Source: Telecom Grows Ad Spend, Durables & Services Decline. Blog​.nielsen​.com. 24 Jul. 2012. Web. 16 Aug. 2012] 
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.