Listen to music while browsing

Digital ad spending to overtake print

By Financial Times

Global digital advertising spend will outstrip newspapers' print revenues for the first time next year, according to forecasts from Aegis Group's media agency, leaving traditional publications scrambling for growth.

In its first forecasts for 2013, Aegis Group's Carat predicts the global advertising market, for digital and print combined, will grow by 5.8 per cent next year, only just below the 6 per cent forecast for 2012.


Since August, Carat, one of the world's largest media buying agencies by spending, has halved its forecast growth for the European media market to 1.5 per cent this year and trimmed its North America prediction to 5 per cent, despite the uplift of the London Olympics and the US presidential election.

Globally, television is expected to continue robust growth, up by 5.5 per cent this year and 5.3 per cent next. But most of the media industry's growth lies in digital, with Carat forecasting a rise in clients' spending of 16.5 per cent in 2012 and 13.5 per cent in 2013, taking its total share of ad budgets to 15.5 per cent next year.

That is ahead of newspapers' 14.3 per cent share for 2013, but still far behind TV, steady at 45.7 per cent.

Jerry Buhlmann, Aegis chief executive, said print media continued to thrive in less-developed media markets such as India and China.

“Newspapers are actually growing in a lot of the faster-growing regions,” he said. “The global picture is not quite as uniformly gloomy as it appears to be in developed markets.”

Mr Buhlmann was speaking as Aegis, among the top six marketing groups, announced strong results for 2011, with like-for-like revenue growth at 9.9 per cent, ahead of rivals such as WPP , and better than most analyst expectations.

Excluding July's sale of Synovate, the research unit, revenue rose 20.6 per cent to £11.4bn in 2011. A strong fourth quarter, up 12 per cent on a like-for-like basis, improved on the third. Pre-tax profits grew 32.3 per cent to £161.8m. Aegis plans to pay £200m in special dividends off the Synovate sale.

Excluding this one-off payment, total dividends for 2011 increased by 16 per cent to 3.2p a share, which Mr Buhlmann described as “a clear indication of the confidence we have in Aegis Group's future”.

What defines us is how well we rise after falling.
By: Stephen Udochukwu Ch

IMF: Ghana could be HIPC by end of

Friday, April 17, 2015

According to the International Monetary Fund (IMF), Ghana's total public debt co ...
read more »

Insurance companies introduce sub-r

Wednesday, April 15, 2015

Drivers who commute across the ECOWAS Sub-region would not be required to re-ins ...
read more »

Dumsor crisis: Over 12,000 workers

Wednesday, April 15, 2015

More than 12,000 people have lost their jobs between January and April 2015 alon ...
read more »

Businesses cry over Cedi fall

Wednesday, April 15, 2015

Business owners are resorting to retrenching their employees as the cedi continu ...
read more »