ART&COMMERCE






World View The world was showered with almost $900 billion worth of marketing communications last year, according to WPP Group, and nearly half of it fell on the United States. Of that, 39 percent was in the form of conventional media advertising–almost $2 per day per person. WPP has been keeping tabs on global ‘pluggery’ and updates the record every year in its annual report; the 1996 installment just came out. The marketing communications industry’s results last year were better than average. The U.S. advertising industry grew by 7.5 percent in 1996, an acceleration from the 5.5 percent average growth rate since recession-inhibited 1992, and slightly better than the 7.3 percent one-year growth record of U.S. marketing communications activity worldwide. Even with last year’s growth spurt, the U.S. continues to lose share. Regions labeled ‘rest of the world,’ mainly non-Japanese Asia and Latin America, showed a 10 percent compound rate of growth since 1992. Advertising, on a global basis, grew 7.8 percent over the same four-year period.





–Alan Gottesman (westendal@pobox.com) is principal of West End Consulting.





THE GOTTESMAN FILEU.S. marketing communications grew by 7.3 percent last year, significantly better than its four-year trend of 4.5 percent.





1992 1993 1994 1995 1996 CAGR*





Advertising $136.2 $141.6 $147.2 $156.8 $168.6 5.5%





Market research 2.8 2.9 3.1 3.5 3.9 8.6%





Public relations 12.6 13.1 13.5 14.2 15.2 4.8%





Other 221.4 230.4 237.9 233.2 248.3 2.9%





U.S. total 373.0 388.0 401.7 407.7 436.0 4.0%





World total 752.6 754.9 815.5 836.2 896.9 4.5%





U.S. share 49.6% 51.4% 49.3% 48.8% 48.6%





Source: WPP Group. Figures in billions of U.S. dollars. *Compound annual growth rate





Copyright ASM Communications, Inc. (1997) ALL RIGHTS RESERVED





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