Advertising spending in the U.S. could exceed pre-recession peak levels for the first time by the end of the year, according to new projections from Carat. The media planning firm estimated global spending will grow 5 percent in 2014 and an additional 5 percent in 2015.
Carat calculated the forecasts based on data from 59 international markets. According to the projections, top performing regions for growth will include North America (4.9 percent), Western Europe (2.7 percent), Central and Eastern Europe (3.5 percent), Asia Pacific (5.4 percent) and Latin America (12.1 percent).
“Carat’s latest advertising forecast gives us increased optimism for the outlook of global and regional advertising spend," said Jerry Buhlmann, CEO of Dentsu Aegis Network, in a statement. "With the global recession further behind us and a healthy trend of 5 percent year-on-year global ad growth, there is positive momentum building across the industry.”
The analysis included television, newspapers, magazines, radio, cinema, out-of-home, and digital media. Television continues to lead the pack, with a 43.2 percent share of global ad spend and 4.8 percent annual growth. Radio and outdoor advertising have both grown by more than 3 percent.
Digital media is expected to exceed forecasted growth, ramping up 16.1 percent over the previous year. In fact, with an expected share of 22.6 percent, digital is on track to outperform declining print advertising revenues in 2015. This growth is largely attributed to social media, mobile usage and video sharing.
Magazines and newspapers, with a combined market share of 20.4 percent, are both expected to see falling market shares in the coming year.