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Growth for the Australian market was revised from the 2.3% growth predicted locally by the media agency just six months ago, and is up from the 3.2% originally forecast for next year. The Australian revision is in line with an overall upward revision of 1% for global ad spend, with Carat forecasting growth of 3.9% in 2010, year-on-year. Likewise, next year will see a boost of 4.7%, up from 4t% in the previous forecast. This follows from a weak performance in 2009 with total ad spend falling 9.2% year-on-year. The growth expected is said to see the global ad market return to 2006 levels.

Global growth is said to be the result of an economic rebound and relative stability of the US market, which, after experiencing a 14.1% decline in ad spend last year is predicted to grow 1.1% in 2010, and a further 1.7% next year. Asia Pacific is also expected to see a significant comeback, with growth of 8.2% this year, revised from 6.8% earlier this year, and up from a decline of 1.2% in 2009. Further growth of 7.6% is expected in 2010. Growth is also strong in Western Europe.

Jerry Buhlmann, chief executive of Aegis Group, said while the forecasts are strong, they are coming off the back of steep spending declines in 2009.

“The overall data…does compare against weak 2009 figures and is comprised of some significant regional variances,” he said.

“Overall, while the short-term economic outlook remains uncertain, these forecasts are an encouraging sign”

Globally and across Asia Pacific specifically, digital is set to be the area of greatest growth over the next two years, seeing 13.5% growth overall this year. All other sectors except for newspapers and magazines are expected to return to growth in 2010, which are set to see drops of 3.2% and 0.8% respectively.

The fastest growing sectors worldwide in terms of media spend are said to be retail, FMCG, food and beauty, and healthcare. Meanwhile public sector spend is expected to decline alongside the travel and entertainment sectors.

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