GroupM adjusts expectations for global, Canadian ad spending

Report follows drop in spending among Canada’s top advertisers Media buying company GroupM announced today a revision to its 2013 global ad spend forecast, to 3.4% from the 4.5% it predicted in December. The downward revision reflects what GroupM called “continued economic discord” in the Eurozone, specifically in the “Eurozone periphery” of Italy, Spain, Portugal, […]

Report follows drop in spending among Canada’s top advertisers

Media buying company GroupM announced today a revision to its 2013 global ad spend forecast, to 3.4% from the 4.5% it predicted in December.

The downward revision reflects what GroupM called “continued economic discord” in the Eurozone, specifically in the “Eurozone periphery” of Italy, Spain, Portugal, Greece and Ireland.

Reflecting the economic hardships affecting the region, GroupM futures director Adam Smith noted that its share of global advertising investment has fallen from 7% prior to the economic crisis to 3% currently, despite a nominal change in its GDP during the same period.

The revised forecast for Western Europe predicts a 2.4% decline to $97 billion, with spending in 2014 expected to rise only 1.8% to $99 billion (all figures in US dollars).

In its “This Year, Next Year” report, GroupM predicted that global ad spending will reach $507 billion this year. The company also released its first ad spend prediction for 2014, calling for a 5.1% increase to $533 billion.

GroupM is calling for Canadian ad spending to increase slightly, 2.25% to $13.6 billion, this year, followed by similar growth – to $13.9 billion – in 2014. The biggest growth area continues to be digital, which is predicted to grow 5% to $3.2 billion.

Digital will account for 23.3% of the total Canadian ad spend this year, compared with 19% globally. Globally, digital spending is expected to hit $95 billion this year, and will account for one fifth of the worldwide advertising investment next year.

The report also outlines some significant variances in advertising spend by Canada’s largest advertisers, with seven of the country’s top 15 advertisers reducing their ad spending last year.

Procter & Gamble was the country’s biggest advertiser with a 2012 outlay of $177 million, although its ad spend was down 11% from $200 million in 2011 according to the report. It was followed by Rogers Communications ($145m, +17%), GM Corp. ($101m, -29%) and Bell Canada ($90m, – 11%).

Retail remains Canada’s biggest advertising category with total investment of $1.2 billion in 2011, an 8% increase from 2011 – followed by automotive ($1.03b, +6%), food ($612m, +5%) and entertainment ($551m, +3%).

There were also significant increases in spending against internet related sites and services (+16% to $113m), schools including correspondence courses and seminars (+14% to $111m) and real estate (+10% to $305m). The biggest decrease came in government spending (-19% to $145m, and hard to believe given the ubiquity of the “Canada’s Economic Action Plan” ads).

The report also notes China’s preeminence as an “advertising rainmaker,” accounting for 40% of net new global advertising investment. There is similar support for sustain advertising growth in Russia, said the report.

Media Articles

Shaw launches new lifestyle network FYI

'Epic Meal Empire' anchors a re-branded lifestyle network

Rogers signs 10-year exclusive deal with WWE

Rogers in wrestling's corner for upcoming CRTC application

OMD Canada launches Ignition Factory in Toronto

Media agency's innovation arm lands in Canada with Sean Dixon and Nick Barbuto at the helm

Quebecor posts Q2 net loss, revenues up

CEO Pierre Dion keeps up the pressure on Ottawa

Torstar has no plans yet for Harlequin proceeds

"We want to be thoughtful on how we move forward."

Social Scanner: Twitter’s not worried about growth… yet

Twitter fends off fears about its growth problem, plus Pinterest goes global and Instagram has a new messaging app

GroupM makes two senior executive appointments

Phil Cowdell succeeding Harvey Goldhersz as MediaCom's North American CEO

Q2 income falls as new Rogers takes shape

New strategic plan introduced in May should be almost fully implemented by September

Rethinking the overnights

Could FX’s decision to abandon traditional TV currency usher in a new era for ratings?