US-based MagnaGlobal this week released an updated forecast for advertising around the world alongside a comprehensive model including data for more than 60 countries covering years between 2000 and 2015.
It forecasts that media suppliers around the world will grow their advertising revenues during 2010 by 4.2% to total $377 billion on a constant currency basis, an increase from its previously published expectations of 2.4%. This follows 2009’s downturn that caused a contraction of 11.3% compared to 2008’s totals.
Modest long-term growth rates, reflecting stronger expectations of global economic recovery are predicted through 2015. The compounded annual growth rate (CAGR) for the global industry is 5.1% over the next five years, compared to expectations of 4.8% it forecast late in 2009.
Video retains its dominance around the world, with more than 40% of advertising, a total of $151 billion, relying on traditional TV. Notably TV’s share is lower in Europe given the pronounced role of public service broadcasters (restrictions on PSBs’ advertising efforts limit TV inventory), but in all regions television is growing, up 5.4% on average through 2015.