Bloomberg News

Global Ad Spending Growth Slowed in Second Quarter, Nielsen Says

October 02, 2011

Oct. 2 (Bloomberg) -- Advertising spending declined in almost half of the world’s most important media markets in the second quarter, deflating global growth, as economic concerns crimped sales, according to Nielsen Holdings NV.

Sixteen of 36 major markets, mainly in Europe, experienced a decline, while Asian countries posted a 9.3 percent increase, Nielsen said. Overall ad spending rose by 5.7 percent in the quarter, compared with 8.9 percent in the first three months of the year, to about $127 billion, the market research company said in a statement.

Advertisers are looking for new avenues of growth as consumer spending stagnates in many developed countries and large corporations cut marketing budgets.

WPP Plc, the world’s largest advertising company, is doubling spending on acquisitions this year in order to focus on fast-growing markets like Brazil and make inroads into digital marketing, a relative bright spot compared with more traditional media like newspapers.

The hardest-hit advertising markets in the second quarter included Egypt, where spending declined by more than half amid political turmoil, along with Spain and Greece.

While WPP and Publicis SA are focused on acquisitions of social media start-ups, television remains a robust destination for advertising dollars. In the first half of the year TV attracted $65 out of every $100 spent on ads globally, up from $63.70 a year ago, according to Nielsen.

--Editor: Cecile Gutscher

To contact the reporter on this story: Matthew Campbell in Paris at mcampbell39@bloomberg.net

To contact the editor responsible for this story: Kenneth Wong at kwong11@bloomberg.net


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