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Good news, bad news: Worldwide advertising spending up, U. S. spending down

June 24, 2010 |  1:06 pm

Although the advertising market is showing renewed signs of strength along with the improving economy, it has not quite returned to 2008 levels.

On Thursday, global advertising giant WPP's GroupM weighed in with a revised forecast for 2010. It said this year's advertising spending worldwide should reach $451 billion -- 3.5% higher than the haul in 2009. Most of that increase comes from growth in China.

Cambodiabillboards The $451 billion matches the amount spent in 2006-07 or 2004-05, after factoring in consumer price inflation, New York-based GroupM said in releasing its forecast, which included data from 70 nations.

In the U.S., ad expenditures this year are expected to drop 1.3% to $145 billion. Last year, $147 billion was spent on advertising, a 7% dip from 2008 levels.

"The U.S media marketplace ... clearly bottomed out earlier this year, and we expect moderate growth in 2011 consistent with GDP improvement,”  Rino Scanzoni, GroupM chief investment officer, said in a statement.  “Television and online spending will outpace other media as they lead with return on investment metrics."

For 2011, GroupM predicts an improved picture: a 4.5% increase in worldwide commercial spending as online advertising continues to climb. Internet advertising is expected to make up 16% of the total ad market by next year.  The company says U.S. ad spending should increase to $149 billion next year.

-- Meg James 

Photo: Billboards in Phnom Penh, Cambodia. Credit: Don Lee / Los Angeles Times


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