Washington, D.C.—Global expenditures on advertising grew 3.3
percent in 2012 to $497.3 billion, a gradual rebound since the sudden
9.6 percent drop in 2009 as a result of the global economic downturn.
Spending has responded to shifts in popular media with Internet
advertising the fastest-growing sector in 2012, now accounting for 18
percent of the total, according to Worldwatch Institute’s
Vital Signs Online service (
www.worldwatch.org).
U.S. advertising expenditures grew by 4.3 percent in 2012 and are
still nearly a third of the global total. The Asia Pacific region
accounted for the fastest growth, however, with ad spending there
increasing by 7.9 percent in 2012 (excluding Japan, which grew by 3.1
percent). Expenditures fell by 2.2 percent in Western Europe, the only
region to see a decline, largely due to the ongoing Eurozone crisis.
The growth in spending on Internet ads has been driven by the
expansion of social media and online video advertising. Mobile and
social media now account for more than half of all advertising revenue
in the United States, for example, having increased by more than 30
percent in both 2011 and 2012.
“As consumers grow overexposed to advertising, traditional forms
such as television commercials, print advertising, and billboards are
becoming less effective,” said Shakuntala Makhijani, the study’s author.
“As a result, advertisers are turning to more subtle techniques, such
as promotional material on blogs, product placement, and interactive
advertising on social media such as Facebook and Twitter. The
distinction between advertising and media content is therefore
increasingly blurred.”
The impacts of advertising and consumerism on all aspects of
society and culture are well documented. Advertising targeted at
children is particularly penetrating and influential, defining their
identity as consumers from an early age and interfering with normal
childhood development. Evidence has shown that children are experiencing
increased physical, emotional, and social harm as a result of
consumerism through advertising.
U.S. consumer advocates continue to call for limits on the extent
and influence of advertising, especially in environments such as health
clinics and public spaces as well as advertising specifically targeted
at children. In particular, advertising in public schools has gained
force in recent years and has infiltrated nearly all aspects of student
life.
Advertisers have also focused more resources recently on “green”
advertising aimed at attracting consumers with claims of improved
environmental impact by tapping into growing public interest in
sustainability and the environment. The number of new products marketed
with environmental claims each year in the United States grew from
around 100 in 2004 to over 1,500 in 2009.
Due to increasing false claims by advertisers about product
sustainability, the U.S. Federal Trade Commission established updated
Green Guides in 2012 that will allow the agency to take enforcement
action against deceptive environmental marketing. The guidelines
discourage the use of general and unsubstantiated terms such as
“eco-friendly” and include strong guidelines for use of terms such as
“biodegradable” and “recyclable.”
While regulatory controls on false advertising such as the Green
Guides are a positive development, true sustainability will ultimately
require less material consumption and therefore stronger overall limits
on advertising to stem its global growth and increasing presence in
everyday life.
Further highlights from the report:
- Newspaper advertising has declined significantly, dropping from
nearly a third of all expenditures in 2002 to less than a fifth in 2012.
- The expansion of television’s share of global advertising has
leveled off after decades of growth: it rose from 36 percent to 40
percent of advertising expenditures between 2000 and 2012.
- Global product placement expenditures are increasing rapidly,
reaching $8.2 billion in 2012, with the United States accounting for
more than half of the market worldwide.
- Retail companies account for nearly one fifth of total advertising
spending, followed closely by the automobile industry in the United
States.
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