PARIS, March 14 (Reuters) - Global advertising spending will tick up 4.8 percent this year to $489 billion with Latin America and Asia making up for weaker demand in recession-hit Europe, according to leading media buyer ZenithOptimedia.
Citing lower risk of a deep economic crisis brought on by Europe’s sovereign debt woes, the forecasters slightly raised their forecasts for 2012 from the 4.7 percent growth they predicted in December.
For 2013, they saw 5.3 percent growth in 2013 from 5.2 percent earlier.
For 2014, ZenithOptimedia, which is a unit of advertisting agency Publicis, said global ad spending would grow 6.1 percent versus the old forecast of 5.8 percent.
“The upgrade is a result of two factors: signs that large companies are investing more in marketing to drive growth and a reduced risk of disastrous collapse in the eurozone, even though its short-term economic performance has deteriorated,” it said in a statement.
Major companies such as Coca-Cola, Pepsi Co, Unilever and Reckitt Benckiser have announced that they would spend more to build their brands this year, ZenithOptimedia said, adding that “many other large advertisers would follow suit.”
The United States will remain by far and away the world’s biggest ad market in the next three years, but 60 percent of the growth over the same period will occur in emerging markets.
No longer confined to the traditional developing markets of Brazil, Russia, India and China, a next wave of countries is set to boost ad spending in the coming years.
Indonesia, Argentina, South Africa, South Korea, Mexico and Turkey are expected to deliver an additional $12.29 billion in ad spending in 2014 compared with 2011.
China will become the second-largest ad market by 2015, overtaking Japan.
ZenithOptimedia also reiterated its prediction that the Internet would overtake newspapers to become the second most popular advertising medium behind television in 2013. (Reporting by Leila Abboud; Editing by Gary Hill)