After increasing by 3.2% in 2012, global ad spending displayed weaker growth in the first quarter of this year, per the latest figures from Nielsen. Spending was flat in North America, while expenditures in Europe retreated by 4.4%, despite reports of improving budget conditions in that region during the first quarter. Interestingly, after a buoyant 2012 that saw ad expenditures grow by 14.6%, the Middle East and Africa region fell back to earth with a moderate 2.9% rise in spend. Notably, social tensions in Egypt led to a spending decline of 20%.
The results were better for the Asia-Pacific and Latin America regions, with spending up 5.8% and 11.9%, respectively. In the Asia-Pacific, China, Indonesia and Philippines each saw growth of around 20%, with Japan the only country to experience a decrease in spend, albeit fairly minor (-1.1%).
It’s important to note that the Nielsen figures only count display ads under the online umbrella. Recent forecasts MAGNA GLOBAL and ZenithOptimedia suggest that search revenues are rising quickly around the world, such that the inclusion of search spend could positively affect Nielsen’s figures.
Within the US, Nielsen separately reported that ad spend decreased by 1% (Kantar Media previously pegged spending as flat when excluding online revenues). However, technology companies bucked that trend, increasing their spending by an impressive 30% year-over-year in Q1 to reach $723 million.
About the Data: Nielsen Global AdView Pulse measures ad spending for TV, newspapers, magazines, radio, outdoor, cinema and Internet display advertising. Ad spend is based mainly on published rate-cards. Some markets may exclude select media due to data availability.
The technology product category comprises hardware and software products including but not limited to cameras and photographic supplies, computers, handheld music players, stereo systems, and others. The technology category is mutually exclusive of the telecom product category.