GroupM adjusts global ad spend forecast downward
The company has decreased its forecast based primarily on continued economic issues in Europe.
GroupM has revised its biannual advertising spend forecast for 2013 down to $507 billion, estimating growth of 3.4% this year rather than the 4.5% originally estimated in December of 2012.
The revised forecast, which is published in the media company’s “This Year, Next Year” report, is a result of measuring 75 countries. Continuing economic issues in Europe, particularly in Italy, Spain, Portugal, Greece and Ireland are listed as the primary reason for the downgrade, according to a release. The report adds that the Eurozone is expected to post an 11% drop in measured advertising for 2013.
As for 2014, GroupM is predicting global ad spending will increase 5.1% over 2013, representing $533 billion worldwide.
Canada is expected to have its overall media ad spend grow by 2% in 2013 versus 2012 numbers, with 1.9% growth over this year currently being forecast for 2014. Some of the headlines impacting numbers in Canada include newspapers currently taking up 28% of media revenue share, far exceeding the platform’s use in consumers media day usage and the potential for DSPs to change online trading and lower costs, according to the report.