Upturn predicted for global ad spend despite first half decline

Nielsen's latest Global AdView Pulse report, which surveys ad spend across 27 markets in Asia, North America, Europe and Africa, concluded, however, that the international ad market is showing signs of improvement. Global ad spend in the second quarter was down 5.8% in Q2 2009, preceded by a 7.9% decline in Q1 2009.

Magazines and newspapers took the biggest hit, with global ad spend down 18.5% and 7.5%, respectively. Radio has emerged in many markets as the medium with the lowest relative percentage decline - down 3.1% globally - even registering an increase in Asia-Pacific of 3.1% year on year.

The report did not break down ad spend for the UK but revealed that, across Europe, TV ad spend fell 8% year on year in the first half; radio fell by 2.3%, newspaper declined 8.3% and magazine dropped 17.6%.

Ben van der Werf, managing director of Global AdView, The Nielsen Company, said that during the rest of 2009, ad spend for broadcast media would improve, although he warned print advertising was unlikely to show any great gains in the near future.

Ad spend in the automotive sector declined most in the first half, down 21%, followed by financial spend, down 17.2%, and clothing and accessories, where spend dropped 14.4%. Ad spend rose 3.6% from fast-moving consumer goods clients and 3.5% from healthcare clients.

Van der Werf added the growth in FMCG and healthcare was due in part to an increase in ad spend for products such as food, which were "cheaper alternatives to out-of-home entertainment, like quick-service restaurants, and for ‘do-it-yourself' products."

This article was first published on mediaweek.co.uk