Europe Continues to Hold Back Global TV Ad Growth, Forecaster Says
LONDON – Western Europe continues to be a drag as global advertising markets rebound, Digital TV Research said on Wednesday.
"TV advertising spend grew by 4.4 percent in 2012 to $167 billion, but only 2.8 percent growth is forecast for 2013 as the recession bites again in several European territories," the research firm said in its latest projection. The quadrennial effect that sees U.S. presidential elections and the Summer Olympics boost global ad results every four years boosted last year's figures.
The research group predicted TV ad growth in North America, Latin America, the Asia Pacific region, the Middle East and Africa, as well as Eastern Europe this year. That will leave Western Europe as the only region of decline, driven by the weak economic state of Southern European countries, such as Italy and Spain.
"Although there will be some improvement in most countries in 2013, TV advertising expenditure is forecast to fall for 19 (mostly European) of the 55 countries" covered by the research firm, Digital TV Research said. Western European ad spending will decline from $30 billion in 2011 and $27.7 billion in 2012 to $27.2 billion this year, its forecast says.
"However, 2014 -- and onwards -- will be better, with only Croatia and the Czech Republic declining in 2014," predicted Digital TV Research founder Simon Murray. The company sees Western European ad spending rising to $33.2 billion by 2018.
Overall, global TV ad spending will jump 32 percent from 2012 to $219 billion in 2018 for the 55 countries covered by the firm, Digital TV Research also forecast on Wednesday.
Comparing estimated 2018 expenditures with the pre-recession year of 2008, the firm said that they will more than double in Latin America "due to the buoyant economies, Brazil hosting both the Olympics and the World Cup, but also because of high inflation in some countries, such as Argentina."
However, TV advertising spending in Western Europe will only be 11 percent higher in 2018 than in 2008, Digital TV Research forecast. "Excluding the booming Russian market, TV advertising in Eastern Europe will still be lower in 2018 than the 2008 total," it said.