Despite a challenging global economy, worldwide advertising spend on TV, magazines, newspapers, and radio posted a 7.3% rise year-over-year in 2011 to $498 billion, according to [download page] an April 2012 report from Nielsen. Spending in Q4 was up 6.2% from a year earlier, closing at $131 billion. In the US, advertising spend decreased year-over-year by 0.2% in Q4, but rose 2% for the year.
The European market declined by 0.4% year-over-year in 2011 overall, while markets in the Asia Pacific, Latin America, and Middle East & Africa all saw double-digit growth.
A full breakdown of US advertising spend from recent reports can be found here, while the latest global ad spend forecast from ZenithOptimedia can be found here.
TV Continues Ad Spend Leadership
Data from the Nielsen Global AdView Pulse indicates that all four major media types rose on a global basis in 2011, with TV leading the way at 10.1% growth. Radio was not far behind, increasing 9.7% year-over-year, as both TV and radio posted year-over-year increases in each region. Growth rates for magazines (2%) and newspapers (1.1%) trailed, and spending on these media actually declined in both North America and Europe.
TV continued to hold the largest share of the four major media types, at 65.1%, followed by newspapers (20.8%), magazines (8.8%), and radio (5.3%).
Internet Spend Rises Rapidly
Other media types also saw increases in 2011 when compared to a year earlier. Internet ad spending saw the most dramatic growth, at 24%, increasing in almost all markets measured despite budget cuts for traditional media in some of those markets. Meanwhile, outdoor advertising expenditures grew 7.7% year-over-year, while cinema spend rose a more modest 2.3%. The report notes that global trends for these media types should be taken only as an indication, as they are based on a smaller subset of countries for which data is available.
Meanwhile, according to an April 2012 report from GroupM, global internet advertising rose 16% year-over-year in 2011 to reach $84.8 billion and comprise more than 17% of all global measured advertising expenditures. Regionally, North America led with an estimated $34.5 billion, ahead of Asia Pacific ($24.8 billion) and Western Europe ($21 billion). The report also predicts that digital advertising spend will reach $98.2 billion globally, a 16% rise from 2011 to account for 19% of all measured ad spend.
FCMG Up 6.8%; Down in North America, Europe
The Nielsen report reveals that although the consumer goods category (FMCG) grew a healthy 6.8% worldwide in 2011, declines occurred in Europe (-3.8%) and North America (-3.1%). Clothing and accessories, a minor spending category, saw increases in expenditures in all regions, posting the most rapid growth overall of all sectors, at 17.5%. Healthcare also posted strong growth of 11.2%.
FCMG held the largest share of total spend, at 24.8%, followed by entertainment (11.6%), industry and services (11.1%), healthcare (10.2%), automotive (8.1%), and media (7.5%).
About the Data: The Nielsen Global AdView Pulse reports on advertising expenditure for Argentina, Australia, Brazil, Canada, China, Egypt, France, Germany, Greece, Hong Kong, Indonesia, Ireland, Italy, Japan, Kuwait, Lebanon, Malaysia, Mexico, The Netherlands, New Zealand, Norway, Pan-Arab Media, Philippines, Portugal, Saudi Arabia, Singapore, South Africa, South Korea, Spain, Switzerland, Taiwan, Thailand, Turkey, the United Arab Emirates, the United Kingdom, and the US.