Developing markets grabbing bigger share of global ad expenditure

Already there are two developing economies in the global top 10 ad markets. The first is China -currently in fourth place but expected to overtake the German ad market this year to grab the number three spot. The Chinese ad market is expected to grow by 13.6% a year to 2013.

Brazil currently claims the seventh biggest ad market in the world but is expected to overtake France for the number six spot this year. Brazil's ad market is seeing annual growth of 15.4%.

Russia to enter top 10

Russia is expected to enter the top 10 this year, climbing from 12th place to 10th, eighth in 2012, and then seventh in 2013. Its ad market is currently growing at 23.3%. It's interesting to note that Naspers has media operations in all three countries.

Currently the top 10 ad markets, according to ZenithOptimedia, are the US, Japan, Germany, China, UK, France, Brazil, Italy, Australia and Canada.

It is, however, in the 10 largest-contributors-to-global-adspend-growth between 2010 and 2013 that emerging markets are really stepping to the fore. China is expected to add US$10.8 billion to spend, Russia US$6.9 billion, Brazil US$3.3 billion, India US$2.5 billion, Indonesia US$2.4 billion and South Africa $1.5 billion. This suggests six of the 10 countries adding the most cash to global ad revenue between 2010 and 2013 are emerging economies. Oh, and all five BRICS countries are represented.

Developing market regions growing fast

Globally, developing market regions are growing fast while developed economies only just keep the ticker going. North America will average growth of 3.1% a year between 2010 and 2013, Western Europe 3.5% and Japan by 0.7% a year. Latin America, meanwhile, is expected to grow by 8.2% a year, Central and Eastern Europe by 12.4%, Asia Pacific by 6.6%, and Asia Pacific (excluding Japan) to grow by 10.2%.

ZenithOptimedia has also put an initial dollar price tag for adland on the revolutions and unrest convulsing the Middle East and North Africa, as well as the recent earthquakes and tsunami in Japan. Together, these events are expected to wipe US$2.4 billion off this year's global ad expenditure. The report notes that, during the Egyptian revolution, there was almost no advertising. The Egyptian ad economy will is expected to fall by 20.0% this year before bouncing back with 12.1% growth in 2012.

Between 2010 and 2013, newspaper ad expenditure is expected to fall from US$95.2 billion to US$91.2 billion, while Internet ad expenditure will rise from US$63 billion to US$94.5 billion over the same period to become the world's second-largest advertising medium in 2013.