Media network predicts strong ad growth in 2012

Carat, the Aegis-owned media agency network, forecasts that global advertising spend will maintain forward momentum in 2012.


However, Carat’s prediction and recent forecasts from other institutions do not take into account the earthquake and tsunami in Japan.

The catastrophe is expected to have an impact on supplies of components for manufacturers of smartphones, cars and other electronics-based businesses and could slow growth in the Asia Pacific markets.

Carat has updated ad spend figures for 2010, saying the year experienced a “stronger-than-expected rebound” and the worldwide markets saw 5.4% growth, compared with the 3.9% growth forecast in August last year.

Growth for 2011 is revised upwards from 4.7% to 5.7%, even though there are no major events, sporting or otherwise, to drive spend in the calendar. In Western Europe, ad spend growth is now expected to reach 3.5%, instead of the 2.7% previously predicted.

2012, which features the London Olympics and US presidential elections, is forecast to see growth of 6.2%.

Chief executive of Aegis Jerry Buhlmann says: “Carat’s global forecasts, published today, underline that last year’s recovery in most major advertising markets, is set to continue in 2011 and 2012. Growth will be supported by the stronger than expected advertising recovery in the US and the continuing high growth in the faster-growing regions of the world, particularly Asia Pacific.

“Clearly the longer-term outlook for the sector is one of a two-speed world with the BRIC advertising markets outstripping the advertising performance in the developed economies.”

The optimism echoes the statements made by chief executive of WPP Group Sir Martin Sorrell recently on unveiling full year results regarding surprising strong growth in the US.

Aegis has reported organic revenue growth of 5.8% for 2010 with underlying pre-tax profit up 8% to £162.4m.


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