Rise in Mobile Pushes Rise in Global Ad Spending

The United States accounts for 5% of the world’s population but 34% of total worldwide advertising. That means we’re the largest ad market but it doesn’t mean we’re the only market. According to a new study by Ad Age, China is one of the fastest growing countries in regard to advertising dollars. With 20% of the world’s population, they currently account for only 5% of the worldwide ad budget but experts say they’re on track to displace Germany as the third largest market come 2011. Sitting in the number two spot? Japan and they’re likely to stay that way.

What’s being advertised globally? Personal care items and automobiles took the top two spots followed by food, drugs and entertainment. When it comes to drugs and entertainment products, more than half of all ad dollars are being spent in the US as compared to the other categories that are only 20 – 30% US heavy.

When it comes to trends in advertising, expecting the rest of the world to respond as American’s do would be a mistake. AdAge says that newspapers on on the rise in Asia, Africa and Latin America which is totally contrary to newspaper sales here and in Europe. And while mobile is big everywhere, it’s key in countries such as China, Brazil and India where phone service is cheaper than internet service. This same trend will drive users toward ebooks and tablets. Cyber cafes continue to flourish in countries such as South Korea and Brazil – perfect places to sell gaming pre-paid cards and social media driven products.

Where we are alike is in TV consumption. Everyone is watching TV, even poor households have to have one these days. The average person the world over is watching more than three hours of TV a day and much of that is sports, reality competition shows like American Idol and soaps (which are much bigger in Latin America than they are now in the US.)

To learn more about trends in global advertising, check out AdAge’s “10 Trends That Are Shaping Global Media Consumption” or purchase the full white paper, Global Media Habits 2010, by Greg Lindsay, at AdAge.com.