Global Ad Spend Rises 5.7% for Q2 2011

Global Ad Spend Rises 5.7% for Q2 2011

Despite overall growth of 5.7 percent for the advertising industry in Q2 2011, ad spending fell in nearly half the world’s key markets in the second quarter of this year as economic concerns continued to impact the advertising industry, according to Nielsen’s quarterly Global AdView Pulse report.

“Compared to the 8.9 percent growth rate in the first quarter of the year, there was definitely some slowdown,” observed Randall Beard, Global Head of Advertiser Solutions for Nielsen. “But, based on the global economy and the financial problems many countries have experienced, a 5.7 percent increase for quarterly year-on-year global ad spend is still great news.”

Global advertising in Q2 totaled USD127 billion (mainly based on published rate cards and four major media types), and the first half of 2011 closed with a +7.2 percent growth over the same period in 2010.

Highlights from Nielsen’s Global AdView Pulse report:

  • Advertising revenue dropped in 16 out of 36 global markets covered by the Nielsen Global AdView Pulse
  • Argentina reported the highest year-on-year quarterly increase of 28.5 percent. Egypt was the hardest hit (-51.7% YOY)
  • Fast Moving Consumer Goods (FMCG) advertising posted its lowest quarterly growth since the Q1 2009 Pulse report: 4 percent globally including declines of -3.6 percent in Europe and -3.0 percent in North America.
  • Clothing and accessories, which was among the worst hit recession categories in 2009, posted the highest quarterly year-on-year increase in Q2 – up 17.9 percent globally, driven by a 27.9 percent increase in Asia Pacific.
  • While radio posted the largest percentage increase among all traditional media in Q2 (+8.2%), overall television continued to dominate global advertising, accounting for 65 percent of total spend.