10 Trends That Are Shaping Global Media Consumption

NEW YORK (AdAge.com) -- While we've been obsessed with the carnage in American media markets for the last couple of years, the global media landscape has mirrored the broader economic one -- which is to say, developed nations are fragmenting while developing ones are booming. This is as true for TV and newspapers (newspapers!) as it is for online video and mobile phones, the latter of which is poised to become the most ubiquitous media device in history.

Ad Age Insights' latest white paper, Global Media Habits 2010, by Greg Lindsay, is a look at how media are actually being consumed around the world, divorced from business considerations. Here, 10 trends that are shaping media consumption in traditional and emerging media markets.

1) Even relatively poor populations now consider TV a necessity.
In 2010, nearly half of Indian households have TV, up from less than one-third in 2001. But in urban areas, that figure jumps to 96%. (Compare that to 7% of Indians who use the internet.) In Kenya, the TV-penetration rate rose from roughly 60% to 70% from 2005 to 2009, even as the number of households measured increased by nearly half. Even in the slums of Sao Paulo, TVs are the top seller of Brazilian retail chain Casas Bahia, despite the fact that residents tend not to have electricity or running water.

2) Despite the internet, we're watching more, not less.
The average American watched 280 minutes of TV each day in 2009, more than four-and-a-half-hours worth and a three-minute increase compared to the year before. A similar rise can be seen around the world, where the average human being watched three hours and 12 minutes worth of TV a day.

3) What is the world watching? Football, 'American Idol'-like contests and telenovelas.
The 2010 FIFA World Cup was the most watched TV event in history, broadcast in every country (including North Korea) and garnering an average audience of 400 million viewers per match. More than one-third of Afghanistan tunes into "Afghan Star," that country's version of "American Idol." And Brazil's Globo network has broadcast locally produced soap operas since the 1970s, many of which reach 80 million viewers.

4) The U.S. and Western Europe are losing newspaper circulation, but the rest of the world is experiencing a newspapers boom.
In both number of titles and circulation, Asia, Africa and Latin America are climbing at an annual double-digit pace. And China and India are now home to nearly half the world's top 100 dailies, with the average newspaper boasting a circulation of 109,000 or more. In India alone, the number of paid dailies has surged by 44%, to 2,700 titles since 2005, accounting for more than one-fifth of all newspaper titles on the planet.

5) Here's why you need to keep an eye on Facebook.
When it comes to time spent on the site, Facebook crushes all rivals, with six hours vs. less than half that time for every other site in the top 10.
Facebook's user base is 517 million people, 70% of whom live outside the U.S. According to a DDB study of 1,642 international Facebook users, the average self-avowed fan is 31 years old and follows nine brands. Three-quarters (76%) have already pressed "like" to signal they are a fan of a brand. In return, they expect special treatment (95%) and are willing to advocate for the brand if necessary (94%).

6) Cyber cafes are the entry for emerging market populations to get online.
The innovation of "cyber cafés" has helped spread internet use in emerging markets. In South Korea, people can rent broadband access for roughly 80 cents an hour, eliminating the need for costly monthly subscriptions, and leading to Koreans' embrace of social networking and multiplayer online gaming. Cyber cafes or "warnets" have since spread to Indonesia, where only 5% of homes have a PC; and to Brazil, where the cafes are known as "LAN houses" and have hourly rates as low as $1.

7) BRIC leads for online video consumption.
Brazil, Russia, India, China and Indonesia are home to the most avid consumers of online video. Internet users in China and Indonesia, for example, were 26% more likely than the average user globally to watch online video, while Indian viewers were 21% more likely and both Russians and Brazilians were 11% more likely. Increasingly, the internet will become TV. In 2009, one third of all internet traffic was video. This year, that figure will climb to 40%, on its way to a projected 91% by 2014, according to Cisco.

8) Internet usage and penetration rates are hobbled by access costs. Mobile isn't.
Only 81 million Indians (7% of the population) use the internet, but six times as many (507 million) have mobile phones. The same pattern is playing out worldwide. Witness PC vs. mobile penetration rates for China (20% vs. 57%); India (4% vs. 41%); Brazil (32% vs. 86%); and Indonesia (5% vs. 66%).

9) Netbooks, e-readers, tablets will drive growth of internet use.
The proliferation of new screens, netbooks, e-readers and tablets is expected to quadruple global IP traffic by 2014, according to Cisco. By then, the equivalent of 12 billion DVDs will be criss-crossing online monthly. The biggest growth driver is video -- data-rich 3D and HD streams delivered to computers, TV sets and to phones, which will lead global mobile traffic to double every year for the foreseeable future.

10) For the foreseeable future, the forecast for the planet's media habits is in a word, more.
Time spent with computers has tripled over the past decade among kids age 8 to 18. The bulk of this group's time is spent on social media, followed by games, video sites and instant messaging. The average kid packs a total of 10 hours and 45 minutes worth of media content into a daily seven and a half hours of media exposure. Just think how this group will consume media in 10 years when they enter the work world and start consuming in earnest.


Posted by Ann Marie Kerwin on 12.06.10
http://adage.com/globalnews/article?article_id=147470

Top 100 Global Advertisers See World of Opportunity

Markets Outside U.S. Capture 61% of Spending. New No. 3 Ad Market: China

CHICAGO (AdAge.com) -- The United States accounts for 5% of the world's population, 20% of global GDP and 34% of total worldwide advertising, making the U.S. by far the largest ad market. But if you want to reach the remaining 95% of consumers, what do you do? Go global.

The Top 100 global advertisers invested 61% of their measured-media budgets outside the U.S. last year, according to Ad Age's Global Marketers, a study covering 96 countries, territories and regions.

Regardless of their home base, these multinational marketers advertise where they see opportunity for growth.They are betting big on one country: China. It accounts for 20% of the world's population, 13% of global GDP and -- for now -- just 5% of total worldwide advertising. But ad spending is growing fast. Publicis Groupe's ZenithOptimedia forecasts that China in 2011 will displace Germany as the world's third-largest ad market, coming in behind the U.S. and Japan.

On the Global 100 roster, 10 firms -- including Procter & Gamble Co., L'Oréal, Colgate-Palmolive Co., Coca-Cola Co. and PepsiCo -- allocated more than 10% of 2009 measured-media spending to China.
One global advertiser stands out in China: Fast-food seller Yum Brands (parent of KFC) last year allocated 27% of measured spending to that market and generated 31% of its worldwide revenue from mainland China.
Among the 46 U.S.-based marketers on the Global 100 roster, 12 firms do more than half their ad spending abroad, largely tracking with where they generate revenue and expect to find growth.

Cincinnati-based P&G, the world's largest advertiser, in 2009 invested two-thirds of measured spending abroad; it generated 62% of revenue outside the U.S. in the year ended June 2010. P&G ranked as the No. 1 advertiser in 18 of the 96 measured markets in Ad Age's study.
Unilever, P&G's European rival and the second-largest global advertiser, last year pumped 86% of measured spending into non-U.S. markets, which accounted for 84% of revenue. Unilever scored as top advertiser in 20 of the 96 markets in this study.
Among the 54 non-U.S. companies on the Global 100 list, six marketers -- including four pharma firms -- do more than half of their advertising in the U.S. market. No surprise there; prescription drug advertising is prevalent in the U.S. but not allowed in many other countries. (The other two firms in that group of six were Anheuser-Busch InBev and SABMiller.)
For the Global 100, total measured ad spending tumbled 8.7% to $107.2 billion in 2009, only the second decline on record (after 2001's 2.6% drop) since Ad Age launched the annual study in 1987. U.S. spending for these firms fell 7.2%; the non-U.S. portion dropped 9.6%. Spending was flat or down for 80 of the 100 companies.
Last year's sharp spending decline came amid the global recession; global GDP fell in 2009 for the first time in the post-World War II era.
There were relative bright spots last year. Personal-care ad spending slipped just 1.6%, displacing automotive as the world's largest ad category for the Global 100. Food advertising also fared well, dropping just 1.5%; you've got to eat.


Posted by Bradley Johnson on 12.06.10

Global Ad Spending Growing Faster Than Expected

NEW YORK (AdAge.com) -- Ad spending this year is growing more than expected and will continue to expand in the coming years, particularly in developing markets and on digital-media platforms, according to several new industry forecasts.

Global ad spending will grow 5.9% in 2010, according to new projections by WPP's Group M, which had previously forecast a 3.5% gain for this year. Next year will see global ad spending improve 5.8%, enough to break $500 billion for the first time, Group M said.
Another agency, Magna Global, is now expecting worldwide ad spending to grow 6.9%, up from its earlier projection of 5.6%. Ad spending will increase 5.4% next year, on the way to an average annual increase of 6.3% through 2016, according to Magna Global, part of the Mediabrands unit of Interpublic Group of Cos.

And a third new forecast, from the ZenithOptimedia unit of Publicis Groupe, projects that global ad spending will grow 4.9% this year, slightly better than the 4.8% it predicted back in October. Ad spending will increase 4.6% in 2011, 5.2% in 2012 and 5.2% in 2013, ZenithOptimedia said.
The gains won't be evenly distributed, of course. Between 2010 and 2013 ZenithOptimedia expects Japan to grow by 5%, North America by 9% and Western Europe to grow by 10%. The group predicted much faster growth for the rest of the world: 23% in the Asia Pacific region, 24% in the Middle East and Africa, 26% in Latin America, 31% in Central and Eastern Europe, and 36% in the Asia Pacific region if you exclude Japan.

During the same period newspapers and magazines will see ad spending decline 2% while outdoor sees 18% growth and TV and cinema each increase by 19%, ZenithOptimedia said. The internet's 48% expansion, meanwhile, will push its share of all ad spending to 17.9% in 2013 from 14% this year, according to the forecast. While display advertising's share of internet ad spending fell to 33.6% last year from 36.2% in 2006, the rise of internet video and social media is reversing that trend.

ZenithOptimedia forecasts display to take 33.9% of internet ad spend this year and 35.0% in 2013.
"The key result of this update is the continued rise of developing markets and digital media, and their central role in driving global growth," said Steve King, worldwide CEO at ZenithOptimedia, in a statement accompanying its new forecast. "In fact the importance of the internet is underrepresented in these figures. Advertisers are investing a lot more in owned and earned media, where there activities do not count as ad expenditure in the traditional sense."


by Michael Bush
Published: December 06, 2010