ZenithOptimedia improves ad spending outlook
ZenithOptimedia upgraded its global advertising spending forecast for this year, 2011 and 2012, predicting total increases of 2.2%, 4.1% and 5.3%, respectively. The agency also predicted that Internet advertising will continue to take a greater portion of ad expenditures for the next three years.
The Publicis Groupe-owned media agency also upgraded its global total ad spending prediction for this year, from a 0.9% increase to a 2.2% jump.
For North America, however, ad spending in major media, which includes newspapers, magazines, television, radio, cinema, outdoor and the Internet, will drop 1.5% to $154.5 billion this year from nearly $157 billion in 2009. In 2011 and 2012, however, North American ad spending will reach $157.3 billion and $162 billion, respectively, representing jumps of 1.8% and 3%, according to the study.
Internet advertising is poised to show considerable growth in the next three years, both in total spending and the percentage of overall expenditure it represents. For this year, Web advertising will increase to $62.6 billion from $55.4 billion in 2009. For 2011 and 2012, Web-based ad spending will jump to nearly $72 billion and $83.9 billion, respectively.
This year, the Internet's share of ad spending will reach 13.9%, up from last year's 12.6%. By 2012, the medium will account for 17.1% of total ad spending, according to the report.
While the television, radio, cinema, outdoor and Web spending categories will grow in the next two years, newspapers and magazines will not, according to ZenithOptimedia. Newspaper advertising will drop to $97.7 billion in 2010, $96.3 billion in 2011 and 95.4 billion in 2012 from 2009's $101.5 billion. In 2008, newspaper ad spending was $122.3 billion.
ZenithOptimedia's report also found that developing nations are recovering from the recession more quickly than their developed counterparts. The agency expects 2010 ad spending to grow 4.7% in the Middle East, 9.3% in Latin America, and 10% in the Asia-Pacific region, excluding Japan.
Last December, the agency predicted total global ad spending would jump 0.9% this year to nearly $448 billion. Group M predicted 0.8% growth to $448 billion, while Magna Global saw a more optimistic 6% increase to $380 billion.
A ZenithOptimedia representative could not be immediately reached for comment.