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Australian and Global AdSpend Rebounds

13 Oct 2010

Global ad spending is on the rebound. Worldwide outlays jumped nearly 13 per cent in the first six months of 2010 to $238 billion vs. the same period a year ago, according to a report issued by Nielsen. Australian year-on year ad spend rose 8 per cent in the second quarter of this year.

By comparison, Nielsen reported a nearly seven per cent drop in global ad spending for the first half of 2009. The research firm credited "booming emerging markets" for much of the growth as well as a return to double-digit ad spending in automotive, durables, fast moving consumer goods, financial services and telecommunications.

Latin America was the fastest growing region during the first half, with spending up nearly 45 per cent (Other than the global total, Nielsen did not provide dollar figures, only percentage changes for the period.) The Middle-East and Africa region rose nearly 24 per cent and Asia-Pacific was up over 12 per cent. Europe rose almost 9 per cent. North America was the laggard, with growth of nearly 5 per cent.

Increases occurred just about everywhere -- in 35 of the 37 countries that Nielsen surveyed. (The exceptions were United Arab Emirates, down almost 6 per cent, and Ireland, down 3 per cent.)

The FMCG sector led spending growth on a percentage basis, up more than 21 per cent and the auto category was a close second at just under 21 per cent. Financial services were up 20 per cent and durables up 17 per cent.

By media, television, showed the greatest growth, up nearly 16 per cent, and remained the overwhelming ad medium of preference in every region with a 62 per cent share of total global ad spend, per Nielsen. Radio was up 11 per cent, while newspapers rose nearly 10 per cent. Bringing up the rear: magazines, up almost 4 per cent.


Australian year-on year ad spend rose 8 per cent in the second quarter of this year giving rise to growing confidence that the worst of the advertising downturn is over, according to the Nielsen Global AdView Pulse report.


The increase is a measurement of ad spend across the main media channels measured in the report; television, radio, newspapers and magazines. In New Zealand, second quarter year-on-year ad spend was boosted 9 per cent.


Nielsen said Australian ad spend increased 11 per cent during the first half of this year if all 10 media channels are factored in.


Source: Mediaweek


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