Aegis’ Carat unit announced to downgrade its global ad spending outlook to 5-percent growth from 5.7 percent, citing “global macro-economic factors, natural disasters and political instability,” but still expects it to expand at a healthy rate this year, Media Post reported.
“Carat’s updated global ad forecasts demonstrate that the recovery in most major advertising markets has continued in 2011 and is set to continue in 2012, against the backdrop of uncertain times,” said Aegis CEO Jerry Buhlmann. “The impact of global macro-economic and political issues, combined with natural disasters, has led us to soften the full-year outlook for 2011 and 2012.”
Carat only lowered its 2012 projection on global ad spending growth from 6.2 percent to 6 percent, because of incremental stimuli from special advertising-related events, including the Summer Olympic Games in London, the UEFA European Football Championship and the U.S. presidential elections, Media Post reported.
According to Buhlmann, the fast-growing and emerging markets keep offsetting the lagging major industrialized nations in ad spending growth. “At the heart of the market, the long-term trend of the two-speed advertising world and the rapid growth of digital are very much in force. The faster-growing regions of the world – particularly China, Russia and Latin America – will continue to eclipse performances from the developed economies. In terms of the growth in media share digital remains the leader of the pack, with out-of-home and TV growing faster than the overall market.”
Echoing with industry estimates from other sources, digital is still the key driver for overall growth. However, some traditional media, such as TV and out-of-home, are sustaining factors, Media Post reported.
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