The Olympics will help drive a 4.2% increase in UK adspend in 2012 compared to 2011, according to Warc’s International Ad Forecast.

It also predicts that most major advertising markets will see revenues rise, led by fast-growing economies such as China, India and Russia.

Overall the sector will increase by 4.5% in 2012, although this falls to 1.9% when inflation is taken into account.

The BRIC nations are anticipated to deliver the most rapid growth, with Russia up 16.5%, India improving by 14%, China up 11.5% and Brazil increasing 8.5%, all at current prices.

In Europe, France and Germany are both expected to see growth of around 1% while Italy is the only country predicted to see a contraction as Warc expects its adspend to fall by 0.8%.

Buoyed by presidential election ad campaigns - such as the ad below attacking Republican hopeful Mitt Romney for speaking French - the US is predicted to see a 4.1% increase in ad sales. 

Meanwhile Canada is expected to see growth of 5.1% and Japan is anticipated to see a 2.5% increase in 2012.

Warc said that debt worries and lack of consumer confidence is holding back adspend in mature markets, and if it were not for the presidential election and the Olympics the outlook would have been worse.

The report comes on the back of a growing trend for companies to move their marketing budgets into more cost effective digital channels.

Last week Proctor and Gamble said that its $10bn ad budget would be redirected away from traditional media to digital mediums like Facebook and Google as they delivered a better ROI.

Furthermore online advertising in the US is set to overtake print for the first time in 2012, while a survey by Efficient Frontier found that search budgets have increased 19% in the past year and Facebook ad spend has doubled in the same period.

Mobile adspend is also increasing, with eMarketer predicting in October that advertisers would spend more than $1bn last year in the US on display, search and SMS-based mobile ads, marking the first time spending in the space has topped the billion-dollar mark.

David Moth

Published 6 February, 2012 by David Moth

David Moth is Editor and Head of Social at Econsultancy. You can follow him on Twitter or connect via LinkedIn

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