GroupM Foresees 3.5% Rise in 2010 Global Ad Spend

WPP’s GroupM has revised its global ad spending forecast for measured media this year to nearly $451 billion, up 3.5 percent compared to 2009. The company’s last forecast, released six months ago, predicted 1 percent growth worldwide.

In the U.S., ad spending is expected to decline 1.3 percent in 2010 to $145 billion, GroupM said. In the earlier forecast, the shop predicted a 4 percent drop in spending in North America (most of which is in the U.S.).

“The U.S media marketplace clearly bottomed out earlier this year and we expect moderate growth in 2011 consistent with [gross domestic product] improvement,” said Rino Scanzoni (pictured), chief investment officer at GroupM. “Television and online spending will outpace other media as they lead with return on investment metrics.”

As anticipated, countries in the so-called BRIIC nations (Brazil, Russia, India, Indonesia and China) contribute significant growth to the new global forecast, GroupM said.

“China remains the world’s biggest contributor to ad growth in 2010, accounting for one in three of all net new ad dollars we expect this year, and one in five as the rest of the world catches up in 2011,” said GroupM Futures director Adam Smith.

Smith also said digital advertising expenditures are playing a key role in worldwide advertising expenditure growth as well.

“The recession has not impacted Internet ad spending except in a handful of highly stressed markets, adding 10 percent to its measured total in 2009,” Smith said. “What continues to power the medium is the steady advance in creativity, analysis and technology which embeds digital in almost all marketing activity. Measured Internet added two points of global ad share in each of 2007, 2008 and 2009 and we think it will sustain a rate of one point a year this year and next, to reach 16 percent in 2011.”