The World Advertising Industry is growing at a fast pace and a major percentage of a country’s gross Domestic Product (GDP) is determined by the revenues generated by this sector. Advertising sector plays a vital role in boosting the economies of both the developed and the developing countries. The pace of growth in different segments of the industry will vary as newer segments like mobile and internet advertising will grow at a rapid rate than traditional segments including print and electronic media.
In the year 2013, the revenue of the global advertising industry will grow by 3.1% as compared to the previous year. The market overall has witnessed a business of USD 495 billion. The bulk of the market share rests with the USA amounting to USD 153 billion. The others leading the race of the global advertising market includes Japan, China, Germany and the UK. The advertising industry in the US grew by 4% in the year 2012. Since, 2012 was the year of elections in the US, the advertising industry was highly benefited and brought with it revenues worth USD 3 billion. However, 2013 will witness nominal growth as no such big events are there in the line. Because of economic disturbances, the scenario of the advertising industry in Europe experienced a downfall in revenues. UK & Germany passed through modest growth trends as compared to the previous year. Both India & China came out with single digit growth in 2012. Out of the 4 BRIC Countries, Russia & Brazil will boost towards growth in the advertising market, with Brazil’s Soccer World Cup of 2014 coming in the next year. The top 10 advertising markets globally in the order of their ad spend share are as listed – with USA on the top most position followed by Japan, China, Germany, UK, Brazil, France, Australia, Canada and South Korea.
The annual revenue of the global online advertising industry is prognosticated to attain an estimated $139.8 billion in 2018 with a CAGR of 7.3% during 2013-2018. The global online advertising industry revenue reached $91.6 billion in 2012 and thus attained a CAGR of 12.4% during 2007-2012. The online advertising media industry is driven by economic development, mobile advertising, widening mobile subscribers’ base, and an increasing online distribution of music and films and growth in the use of digital media.
The growth of the global advertising industry over the last 5 years has been nominal but over the span of next few years .i.e between 2013-2017, it is expected to grow at a rate of 3.5% and attain a business of approximately USD 563 billion by the end of 2017. The growth of the advertising industry is highly influenced by rapid digitization. Moreover, growth in the use of technology including higher use of smart phones, usage of internet and various other advancements in technology support growth of this sector.
As regards the category of media used for advertising world over, television remains at the top most position occupying 39.9% share of the global ad spend share by medium. Next in the line is the internet with 22.1% of the global market share on advertising. 2.3 billion people globally access the internet as compared to 360 million in the year 2000,thus expanding the horizons for the world advertising industry. However, newspapers & magazines saw a decline in the usage in terms of advertising with 16.4% and 7.7% of the total global ad spend. Radio on the other hand, showed a positive increase as a medium of advertising as it is easily accessible & targets the audiences using their transport for the ad campaigns grasping 6.6%. Cinema as medium of advertising, the world over stands at a nominal 0.6% of the total global ad spend share by medium. The future of the advertising industry will focus on digital advertising.
Last Updated on : 27th August 2013