Global ad spend recap, forecast reflect U.S. mortgage doldrums
ZenithOptima, a division of the global advertising firmÂ Publicis Group, has released a free summary of a global advertisingÂ report that reveals many of the same trends apparent in the United States — the rapid loss of ad salesÂ by newspapers and radio; a mild uptick in television and outdoor ad spending; andÂ continuing strong growth ofÂ InternetÂ advertising (click here to read)Â summary.
I chose one of the charts (see above) and ran it through a spreadsheet to see the comparative growth rates, historical and projected. The percentages shown on the right are from my calculations.
As would be expected North American, the largest market, grows theÂ slowest, versusÂ theÂ emerging advertising frontiers in Central Europe orÂ Africa, the Middle East and ROW (rest of world?). Of course thereÂ may be issues with the water in some of these rapidly-growing geographies.
One of the reasons I parked this number here is that at some future date I want toÂ figure out whether global ad spending matches the ratio I have previously computedÂ for the U.S., of roughly 2.2 cents of advertising for every dollar of Gross Domestic Product. I just don’t have worldÂ GDP handy and don’t have time to look for it today.
Meanwhile, if you have another moment to spare, this Economist article solved one mystery about Internet advertising, only to create another.Â The piece, “Many ways to skin a cat,” explains why previous Web advertising metrics such as hits and page views are passee as measures of effectiveness (hits inflated activity because every graphic registered; page viewsÂ had beenÂ a better choice but the AJAX technology ofÂ Web 2.0 weaken it as a measure).
The article goes on to talk about new measures in the works, such as time spent with media, and it struck me thatÂ the InternetÂ ad sellers have noÂ firmer idea of the effectiveness of their message delivery thanÂ their mass media predecessors. They simply have more meaningless metrics in theirÂ sales kits becauseÂ everything is trackable on theÂ Web. That doesn’t meanÂ the numbers reveal any usefulÂ trtend. But if you are an ad buyer at aÂ major brand those numbers must tell you that nobody gets fired, nowadays,Â for moving a larger share ofÂ their budget to the Internet.