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Global Advertising and Marketing Services Industry

 

The global advertising market expanded by 6% in 2010 to reach almost $87 billion, according to MarketLine. The industry is expected to reach almost $113.5 billion in 2015, representing more than 30% growth in five years. Food, beverage and personal/healthcare represent the leading market segment, generating 25% of overall market value. The Americas account for more than 42% of the overall industry.

 

Companies selling consumer products are the biggest consumers of advertising and market services. Other sectors that use promotion services include companies involved in technology, telecommunications, financial services and entertainment. Advertising and marketing as business services are enlisted to built client relationships, boost brand awareness and encourage brand loyalty.

 

Key Market Segments

 

  • The global outdoor advertising market is expected to reach almost $44 billion by 2017, reports Global Industry Analysts. Promotion budget cuts carried out due to the economic recession are expected to ease as the economy begins to recover. Outdoor advertising is expected to grow at a faster rate than other market segments, such as print and broadcast media. This latter industry is forecast to record the fastest yearly growth rate of more than 9% between 2011 and 2017.

 

  • The global social media marketing industry is showing signs of strong growth across the BRIC nations (Brazil, India, Russia and China), reports BRICDATA. Many companies are deploying social media marketing strategies and dedicating more funds to marketing budgets. Market growth is driven by advantages that social media marketing affords companies, such as access to a large audience and a method of gathering key information to research motivation for making purchases.

 

  • With almost 6 billion mobiles worldwide, and 2 billion internet users, the mobile channel for advertising and marketing represents a sector with vast potential. Berg Insight estimates the world mobile marketing and advertising sector exceeded $2.6 billion in 2010. The market is expected to record almost 37% yearly growth between 2010 and 2016 to exceed $17 billion, or just over 15% of the global digital advertising industry. Mobile advertising is expected to represent almost 4% of the world’s advertising spending on media overall.

 

  • In-game ads makes use of digital gaming to reach a young consumer base to boost brand awareness and loyalty. Parks Associates notes that the sector refers to gaming through devices such as smartphones, tables, game consoles and also PCs.

 

  • The global digital video advertising market witnessed growth surges in 2006 and 2010. According to Accustream, there was a near 90% video media spend surge in 2010, and an impressive 130% market expansion in 2006.

 

 

Regional Market Share

 

India’s advertising and marketing industry is witnessing strong growth in its mobile market segment due to widespread adoption of tablets and smartphones, reports NetScribes. Companies are favoring this channel to communicate advertisements and promotions to a large consumer base. Companies can also target specific audiences by using targeted technologies.

 

India’s digital signage sector has not as yet been extensively explored but holds good potential, according to NetScribes. It allows companies maximum flexibility and stresses the need for high quality content, which becomes the main differentiator between industry players.

 

China’s advertising market generated close to $7.9 billion in 2010, reports MarketLine. Food, beverage and personal/healthcare represented the leading market segment, generating close to $3 billion, accounting for 28% of the overall market. Market growth is expected to accelerate, exceeding 13% yearly growth between 2010 and 2015 to exceed $14.7 billion.

 

The EU advertising market exceeded $23.5 billion in 2010, reports MarketLine. Food, beverage and personal/healthcare represented the leading market segment, generating close to $4.5 billion, accounting for almost 20% of the overall industry. Market growth is expected to accelerate to reach a yearly rate of almost 5% between 2010 and 2015 to reach almost $30 billion.

 

The US advertising market generated close to $35 billion in 2010, according to MarketLine. Market growth is expected to reach a yearly rate of almost 3.5% between 2010 and 2015 to reach close to $41 billion. Food, beverage and personal/healthcare represented the leading market segment in 2010, generating almost $9 billion, accounting for more than 25% of the overall industry.

 

 

Advertising & Marketing Industry Trends

 

BRICDATA predicts that social media marketing expenditure will continue to grow moving forward. The sector will record strong growth in India in particular, after more than 50% of outfits using the media were successful in growing their customer base. Internet penetration and adoption of devices such as smartphones and tablets will continue to fuel growth. The launch of 3G services, and soon 4G services, will also drive market growth.

 

 

Leading Industry Associations

 

 

 

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