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Global Advertising Spend Up 5.7% In Q2 2011

Asia Pacific Most Robust Region; Flat Growth for Western Europe in Q2
FMCG Ad Spend Shows Signs of Slowing in Europe and North America, While Advertising for Clothing and Accessories Increases in Asia Pacific

Marisa Grimes, +1 646 654 5759
Alessandra Rossi, +31 20 398 8213

New York, NY – (October 3, 2011) – Despite overall growth of 5.7 percent for the advertising industry in Q2 2011, ad spending fell in nearly half the world’s key markets in the second quarter of this year as economic concerns continued to impact the advertising industry, according to Nielsen’s quarterly Global AdView Pulse report released today.

Nielsen reported that advertising revenue dropped in Q2 in 16 out of 36 global markets – the first significant decline since the Q3 2009 report when ad spend fell in more than half the markets monitored at the height of the global recession. “Compared to the 8.9 percent growth rate in the first quarter of the year, there was definitely some slowdown,” observed Randall Beard, Global Head of Advertiser Solutions for Nielsen. “But, based on the global economy and the financial problems many countries have experienced, a 5.7 percent increase for quarterly year-on-year global ad spend is still great news.” Global advertising in Q2 totaled USD127 billion (mainly based on published rate cards and four major media types), and the first half of 2011 closed with a +7.2 percent growth over the same period in 2010.

Declines in ad spending for the fast moving consumer goods (FMCG) category in Europe and North America, and the continued decline of newspaper ads, also contributed to slower growth in these regions. However, in the USA, the world’s largest ad market, these declines were off-set by increases in the automotive, insurance and financial service categories, which contributed to 3.1 percent overall growth in both the US and North America as a whole.

FMCG advertising posted its lowest quarterly growth since the Q1 2009 Pulse report: 4 percent globally with notable declines of -3.6 percent in Europe and -3.0 percent in North America. The decline in FMCG ad spend was particularly surprising as the Easter holiday, traditionally a key occasion for FMCG and confectionary advertising in Europe and North America, took place in late April this year, which should have pushed more ad revenue to the beginning of Q2, noted Beard. Within FMCG, cosmetics and toiletries posted the most robust growth of 6.9 percent and accounted for nearly one in every ten dollars spent globally.