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World ad revenues to be reached $412 bln next year

06 December 2010 14:22 (UTC +04:00)

Baku â€“ APA-Economics. The global market will grow at a lower rate than in 2010 after the current year saw a particularly strong bounce-back after the recession and featured Olympics-related spending, while economies are still expanding at a sluggish pace, with debt concerns rattling some European countries, Hollywood Reporter reported.

But prognosticators have generally upgraded their global forecasts ahead of the end of the year. And starting in 2012, worldwide and U.S. ad growth rates should pick up again, they predict.

Monday’s panel will also make predictions that signal a changing balance of power in the ad world. For example, ad experts expect that global Internet ad spending will catch up to or even exceed newspaper ad spending by 2013 and that China will continue to rise in the ranks of top ad markets.

Wieser forecasts U.S. ad growth of 4.1% this year to $170.3 billion, or 2.8% when normalized for the year’s benefits from elections and the Olympics, followed by 3.1% on a normalized basis in 2011, signaling improving underlying dynamics. When not adjusting for what he estimated to be an Olympics and political ad benefit of around $2.5 billion in 2010, next year’s growth rate will be lower. Between 2010 and 2015, Wieser expects average U.S. ad growth of around 3.5%.

Wieser also projects global ad growth of 5.4% to $412 billion in 2011, on a constant currency basis, up from his previous 4.2% forecast. For 2010, he has raised his growth assumption from 5.6% to 6.9%.