Tuesday, June 26, 2007

Are You Getting Any? Ad Spending From Billions To Trillions

Are You Getting Any? Ad Spending From Billions To Trillions

PricewaterhouseCoopers recently published a report entitled “Global Entertainment and Media Outlook: 2007-2011.” It anticipates the growth rate annually to be 6.4% resulting in $2 trillion dollars to be spent in 2011.

Internet advertising dollars are projected to surpass spending on newspaper publishing by 2009. PwC expects Internet ad spending to grow from $177 billion in 2006 to $332 billion in 2011, which predicts a 13.5% annual growth rate.

Although the United States has the largest industry, it is also the slowest growing market with a 5.3% AGR tapping $754 billion in 2011. Asia-Pacific is marked as the fastest growing currently holding a 13.5% AGR.

Over the next five years, the majority of the growth in the industry is to come from online and wireless digital media. Global advertising will increase at a 5.4% annual growth rate from an estimated $407 billion in 2006 to $530 billion in 2011. Five year projections show online/digital and mobile fields worldwide to increase to $153 billion. Broadband households will grow from 240 million to 540 million and wireless subscribers are predicted to increase from 2.3 billion to 3.4 billion globally.

PwC has said that in terms of regions, economic and media/entertainment growth will continue to foster the importance of India, China(BRIC), Brazil and Russia. “Content, distribution and technology companies need to aggressively seek out new relationships to accommodate the shift towards convergence,” said Jim O’Shaughnessy, global chairman of PwC’s entertainment and media practice

Asia-Pacific spending on distribution of TV programming on mobile handsets is expected to increase from $26 million in 2006 to $6.5 billion in 2011. At 14.7%this is three times the 5.5% growth rate projected for the rest of the world.

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