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Worldwide communications services expenditure 2007

Worldwide communications services expenditure 20071 $m

  Advertising Market
research
Public
relations
Direct &
specialist
communications
Sponsorship Total
North America 174,116 9,333 3,581 112,173 14,930 314,133
Latin America 16,586 1,230 255 17,820 3,000 38,891
Europe 142,538 11,500 2,350 99,208 10,600 266,196
Asia Pacific 104,370 3,900 890 32,032 7,400 148,592
Middle East, Africa and
Rest of world
10,982 1,800 12,782
World total 448,592 25,963 7,076 261,233 37,730 780,594
Worldwide communications expenditure 2003 - 2008

Source: GroupM
f Forecast
1 Estimate

Note

Revenues cited here represent an estimated 80-90% of the worldwide market. Estimates exclude certain unmeasured trade/consumer promotional expenditures and very early stage economies.


The American presidential campaign started early this time round, as far back as mid-2006, with the cost of nomination campaigns pegged at $150 million and presidential campaigns at $500 million. The only pity is that Mayor Bloomberg, a possible independent candidate, did not enter the race, a move that may have boosted total election spending by between $500 million and $1 billion to $3 billion – and that's just the above-the-line figure.

Further over the horizon, true globalisation and the growth of Asia Pacific in particular, overcapacity and the shortage of human capital, the web, the demand for internal alignment (and, as a result, internal communications), retail concentration and the rapidly growing importance of corporate responsibility, should all underline and assure the importance of our industry and its constituent parts – advertising and marketing services.

In 2007, spending on worldwide communications services – advertising and marketing services – grew by more than 6% to over $780 billion, based on more rigorous data now available to our Media Investment Management parent company, GroupM. WPP's market share stood at nearly 10%. This year, the industry should grow by at least a similar rate. As a proportion of worldwide GDP, it probably fell during the recession of 2001-03, but stabilised in 2003, 2004 and 2005. It probably grew again in 2006 and 2007 and will do so in 2008. 2009 may be a different story, with a slowdown in the US and slower growth in China.

Advertising and Media Investment Management – which concentrates historically on traditional areas such as television, radio, newspapers, magazines, outdoor and cinema – has grown well in recent times and led the industry out of the recession. But its overall share has declined as supposedly less sophisticated, less global and less-developed marketing services have gained. These are the so-called below-the-line areas, such as Information, Insight & Consultancy, Public Relations & Public Affairs, Branding & Identity, Healthcare and Specialist Communications – particularly direct, interactive and internet communications.