Carat has revised its global ad spend growth forecast down to 5% for 2011 and 6% for 2012. 

This represents a dip from the 5.7% and 6.2% the independent media communications agency predicted in March. 

It reflects caution sparked by global macro-economic factors, natural disasters and political instability in a number of parts of the world.

However, Carat remains cautiously optimistic for 2012, when global events such as the London Olympics will undoubtedly fuel advertising demand.

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. 

TV is expected to grow by 6% this year and 6.2% in 2012, and out of home advertising is forecast to grow by 6.3% (2011) and 8.1% (2012).

“Carat’s updated global ad spend predictions 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, ” says Jerry Buhlmann, chief executive of Aegis Group, Carat’s parent company. 

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. 

Carat predicts that the faster-growing regions of the world, particularly China, Russia and Latin America, will continue to eclipse performances from the developed economies.

Latin America has the largest regional increase forecasts – 13% for 2011 and 12.9% for 2012. North America, meanwhile, is expected to grow by just 3.2% and 5.5% over the same period.   

Posted by 

Nicola Carpenter