Quadrennial effect to work its magic on adspend again
LONDON - Growth in the ad industry will be ahead of global economic growth, with a 6% rise in spending forecast for 2007 to $433bn (£215bn), and a 7% rise in 2008.
The figures have been published today by Group M, WPP Group's pooled media buying operation, in a report called This Year, Next Year.
The report forecasts a boom in global adspend in 2008, partly because of the quadrennial effect of the Olympics and the US presidential bid, where Hillary Clinton is being challenged by Barack Obama for the Democratic nomination. Group M said these factors are likely to add a combined $2bn, in the US alone.
In 2007, Asia Pacific will lead the way with growth in advertising revenue of 30%, lifting to 38% in 2008, partly because of the Beijing Olympic Games.
On a global basis, television accounts for almost half the money spent on advertising.
The internet remains the fastest growing medium, accounting for up to 60% of growth in the developed world. However, the report says that the internet's share of overall ad spend is going to fall from 32% last year to 30% this year.
Group M is forecasting sponsorship to grow from $38bn in 2007 to $44bn in 2008.
WPP Group is due to report its first half results on Friday and will reveal a rise in profits and strong progress in Latin America, Asia Pacific and Eastern Europe.
WPP is expected to report its own growth at between 4% and 5%.
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