When the going gets tough, advertising and marketing budgets historically get going. And it hasn?t got much tougher than the past five years in Europe and the US.
In February, we wrote about a how 40.8 per cent of marketers were planning to increase their marketing spend in 2012 (40.8 per cent of marketers will raise their marketing spend in 2012 ? but in what area).
What the survey in this article didn?t research was the influence of the emerging (and fast growing) economies, and there?s some encouraging news for businesses looking to boost trade in these countries.
According to the respected World Advertising Research Centre (Warc), the BRIC countries will spearhead advertising growth in 2012 with Russia predicted to increase spend by 16.5%, followed by India (14.0%), China (11.5%) and Brazil (8.5%).
Unfortunately the news isn?t as encouraging when it comes to Europe as ad spend in the eurozone is struggling with three of the biggest European countries expected to record the worst year-on-year performances: Germany (1%), France (0.8%) and Italy (-0.2%). All three economies are facing the potential of another recession due to the eurozone debt crisis which (following previous trends) will cause a big decrease in ad spending.
There is brighter news for the US and the UK where Warc is predicting 4.1% and 4.2% growth respectively, supported by the Presidential election in the States and the Olympics in Great Britain. If either of these events were not occurring then these figures would undoubtedly be a lot lower.
So far as the wider global economy is concerned, the Organisation for Economic Cooperation and Development, reported last week (March 12), that there were at last ?tentative? signs of recovery across its 33 member countries overall. Their figures also point to a slowdown in the rate of growth in China and Brazil, but India and Russia remain strong. However, in comparison to the growth rates of more ?Western? countries, China and Brazil?s growth is still miles ahead supporting the theory that the BRIC countries will be the biggest spenders on advertising.
The Conversation, 40.8 per cent of marketers will raise their marketing spend in 2012 ? but in what area, February 2012
The Guardian, BRIC countries lead advertising growth, March 2012
BBC News: OECD: Eurozone shows tentative signs of recovery, March 2012