{"id":656091,"date":"2013-05-03T09:52:58","date_gmt":"2013-05-03T13:52:58","guid":{"rendered":"http:\/\/blogs.reuters.com\/globalinvesting\/?p=9373"},"modified":"2013-05-03T09:52:58","modified_gmt":"2013-05-03T13:52:58","slug":"its-all-adding-up-emerging-markets-to-drive-global-spending","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/656091","title":{"rendered":"It\u2019s all adding up \u2013 emerging markets to drive global spending"},"content":{"rendered":"

The world’s leading ad agencies are positioning themselves\u00a0 in Brazil, Russia and China — countries that are expected to provide almost a third of the growth in global advertising over the next three years. That’s according to a report by S&P Capital IQ Equity Research, a unit of publishing giant McGraw Hill.<\/p>\n

Most major advertisers already have a foothold in these BRIC economies, where the advertising market is projected to grow by an average 10.7 percent\u00a0 a year over the next three years — more than three times the growth rate in\u00a0 the developed world.\u00a0 Over the next 15 years,\u00a0 big emerging markets will add $200 billion to the global ad spend, S&P Capital IQ reckons.<\/p>\n

Hopes, unsurprisingly, are pinned on the soccer World Cup in 2014 and the 2016 Olympics, both hosted by Brazil. Russia hosts the 2014 Winter Games in Sochi and Football World cup in 2018 and both these events are expected to boost ad spending. The behemoths of the ad world have prepared for this, says Alex Wisch, an analyst at S&P Capital IQ:<\/p>\n

<\/p>\n

<\/p>\n

\u00a0\u00a0\u00a0 The global agencies have already developed a solid foundation in the BRICs, so the heavy lifting on the investment ramp is largely behind them.<\/span><\/strong><\/p>\n

\"Rio<\/a><\/p>\n

(Graphic under creative commons)<\/p>\n

Accordingly, S&P Capital IQ has a ‘buy’ recommendation on advertising agencies Publicis, Interpublic and Omnicon while advising a “hold” on WPP.<\/p>\n

Emerging markets currently account for a small proportion of the global ad marke<\/a>t which is estimated to be worth more than $500 billion. Despite faster growth that will remain the case, S&P Capital IQ says, noting that in absolute spending terms, North America will contribute as much to global advertising expenditure as China, Brazil and Russia combined over the next three years.<\/p>\n

While Europe looks set for more disappointment, the report predicts faster momentum in North American markets as economic recovery gathers steam. One reason is digital advertising — internet advertising, digital marketing and data services\u00a0 –which is better established in the United States.<\/p>\n

The outlook is\u00a0 ‘cautiously optimistic’ for global advertising agencies, driven by further expansion in higher growth markets, the report concludes.<\/p>\n

Watch that ad space…<\/p>\n","protected":false},"excerpt":{"rendered":"

The world’s leading ad agencies are positioning themselves\u00a0 in Brazil, Russia and China — countries that are expected to provide almost a third of the growth in global advertising over the next three years. That’s according to a report by S&P Capital IQ Equity Research, a unit of publishing giant McGraw Hill. Most major advertisers […]<\/p>\n","protected":false},"author":8167,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-656091","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/656091","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/8167"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=656091"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/656091\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=656091"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=656091"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=656091"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}