Smiles broaden as health
increase ad spend

Despite mounting economic pressures, global advertising spend increased 4 percent in the Q1 of 2008 compared with the year-earlier period — led by nearly 10 percent growth in the Asia-Pacific region, according to the Nielsen Company's Global AdView Pulse report - MarketingCharts reports.

Television remained the highest-grossing medium for ad spend in Q1, recording a 6.9 percent growth rate globally — and growth in every region — and accounting for 60 percent of global ad spend:

Newspapers, representing almost 24 percent of spend, remained flat (0.4 percent) and magazines declined slightly (-0.9 percent).

Sectors

Globally, healthcare retained the majority share of ad spend, with over 10 percent of all advertising activity. With 9 percent of global consumers ranking their health as their biggest concern today (Nielsen Global Consumer Concerns report, May 2008), this figure could continue to rise, Nielsen said.

Fast-moving consumer goods (FMCG, aka CPG) advertising spend is also growing at a significant rate (6.7 percent), recording growth across all regions, and ad spend in the clothing & accessories sector grew 5.5 percent, according to Nielsen.

More of the findings and analysis issued by Nielsen, below.

Regional Views

In the first quarter of 2008, ad spending in Africa grew over 16 percent, and the Asia-Pacific region recorded almost 10 percent growth. In more-developed North America and Europe, growth was much slower - ad spending in North America climbed just 1 percent and declined in Europe (-0.4 percent). As a result, each of those two regions lost one share point Asia Pacific.

North America

North America recorded slight total growth (1.2 percent), despite a softening US economy and the recent Writers Guild of America strike. These negative factors were offset somewhat by political advertising related to the US Presidential Elections.

Although Canada's media environment was affected by the strikes, the stronger economic situation in Canada allowed the local advertising market to close the first three months of the year with a percentage growth higher than the one registered in the USA.

Asia Pacific

Of the three regions surveyed, Asia Pacific showed the most growth across the quarter, registering 10 percent. All four major media types (television, magazines, print and radio) contributed to this growth. This region is expected to benefit further from economic development in fast-growing Asian markets.

On the other hand, elements of uncertainty linked to the world economic situation and the increase in oil and commodities prices have reached Asian and Oceanian soil, and the effects of these pressures may slow this region's overall upwards trend.

The rise of ad spend in Asia Pacific has been attributed to strong growth in China, India and Indonesia; in other markets, growth remained flat.

According to Nielsen analysts in China, the Chinese economy is expected to remain strong in 2008. Nielsen forecasts increased growth this year, due to the popularity of internet video advertising and local search.

Europe

The ad market in Europe remained flat over Q1 of 2008. Television, which accounts for almost 50 percent of total European advertising spend, is the only media type showing positive growth (2.2 percent).

The slow economic growth of many European markets and the effects of economic uncertainty have had an impact on advertising trends across the region; however, there is an expectation that the recent UEFA Euro Cup 2008 and the upcoming Olympic Games will have a positive influence on advertising spend in the second half of the year.

According to Nielsen experts in Germany, in the first three months of 2008 almost 30 million Euros were invested in campaigns with a direct or associated reference to the UEFA European Football Championship in that country.

Even in oil-rich Norway, where the economy is going from strength to strength, there are now signs of more moderate development. Market analysts from Nielsen Norway say the main drivers behind this moderation are a marked decline in economic growth among Norway's trading partners, a stronger Krone and several interest rate rises in the past year.

Africa

South Africa's advertising market grew a stunning 15.3 percent over the quarter. As usual, television and print have the lion's share, but internet advertising is gaining momentum in this market, growing by a whopping 67 percent across the three-month period.

According to Nielsen analysts, television viewing in South Africa may have been affected by a power crisis in early 2008, causing widespread blackouts across the country, but the extent of the impact is still unknown.