It’s a big world of opportunity for companies seeking global markets, particularly for U. S. firms who are looking for expansion overseas. What is it that marketers and companies need to know about global markets and need to keep in mind for their strategic marketing plans? Put your list together, and then compare it with the one developed by Ad Age Daily.
- Advertising globally is a $500 billion market.
- Advertising growth is 3.9% in 2012 and 2013 worldwide.
- Worldwide ad spending is at an all-time high and is expected to set new records each year through at least 2017.
- Regional spending is mixed. Advertising is Asia/Pacific and Latin America is growing, but U.S. spending will not pass the 2007 peak until 2015.
- Emerging markets will pass the U.S., accounting for roughly one-third of ad spending.
- Brazil, Russia, India, and China (BRIC) account for nearly 50% of the emerging market ad spending, with China close behind the U.S.
- Digital spending is one in five ad dollars, with Internet media achieving nearly 20% of the 2013 spending.
- TV’s portion or global ad spending will hold steady through 2015 at about 40%.
- There are 43 companies spending more than $1 billion globally on media.
- Personal care is the world’s largest ad category; automotive and food follow closely behind.
And the three largest global advertisers? Proctor & Gamble, Unilever, and L’Oreal.
Group Activities and Discussion Questions:
- Start by discussing the overall requirements for global marketing. Ask students to list items that are critical to global growth.
- Review the list of items in the class. Discuss how each of these might be applied by U.S. companies seeking global markets.
- Divide students into teams. Have each team select a product and then develop a global advertising strategy.
- What are critical issues to address?
- What research is required to develop a campaign?
Source: Ad Age Daily, 12/10/2012