Global advertising to be depressed through 2013, PWC report says

The annual entertainment and media sector forecasts from Pricewaterhousecoopers is due out today and the the outlook is pretty grim worldwide, according to a story in paidContent.org. Asia is looking much brighter than North America and Europe. According to its Global Entertainment & Media Outlook 2009-2013:

• The global entertainment & media market as a whole, including both consumer and advertising spending will grow by 2.7 percent compounded annually for the entire forecast period to $1.6 trillion in 2013.
• A 3.9 percent drop in 2009, and a mere 0.4 percent advance in 2010, with a period of much faster growth during the remaining period to 7.1 percent in 2013.
• Consumer spending in E&M will fall by a projected 1.2 percent in 2009, remaining weak in 2010 and seeing only relatively low growth at 3.2 percent in 2011.
• Responses to recession vary across territories. Latin America and Asia Pacific are fastest growin, with annual compound rate of 5.1 percent and 4.5 percent through to 2013 reaching $73 billion and $413 billion respectively.
• Video game ads are expected to outpace the rest of the ad industry (though from a low base) at 13.8 percent CAGR compared to an overall industry decline at a compound rate of 0.6 percent during the forecast period. The growing proportion of Internet and mobile advertising in the overall global advertising mix will rise from around 12 percent in 2008 to 19 percent in 2013, though that still seems low as a proportional share, meaning the work's still cut out for replacing those analog dollars with digital, well, dollars.
• Four segments—recorded music, B2B publishing, newspapers, and consumer magazines—will suffer actual declines in total global revenues during 2009-2013 as a whole, in stark contrast to CAGR in excess of 6 percent in Internet access, Internet advertising, video games, and TV subscriptions and license fees, and of 4 percent in filmed entertainment, which will become an increasingly digitally-driven segment.
• Advertising revenues as a whole are facing a period of broad decline over the coming five years, with global advertising spend across all media projected to be still below its 2008 level in 2013. This means a "profound structural shift during the five years towards more targeted and cost-effective ad models enabled by digital. This in turn may result in a permanent reduction in total advertising spend, as dollars formerly 'wasted' through inaccurate targeting are saved and reallocated to other priorities," says the report.