ZenithOptimedia: Developing Markets to Lead Ad Growth

LONDON, March 31:
ZenithOptimedia has downgraded 2008 ad expenditure growth in North America and
Europe to 3.8 percent, but has upgraded the forecast for the rest of the world
to 11.1 percent.

The organization notes
that developing markets will contribute 63 percent of ad expenditure growth
between 2007 and 2010, increasing their share of the global ad market from 27
percent to 33 percent. The developed markets—North America, Western
Europe, Japan—will contribute 37 percent of new ad expenditure between
2007 and 2010. In addition, the Asia Pacific, excluding Japan, will overtake
Western Europe as the second-largest ad region by 2010.

Ad expenditure in North
America is forecast to hit $193.6 billion this year, a 3.7 percent increase
from 2007. Expenditure is expected to rise just 2.2 percent next year to $197.9
billion.

In Western Europe, a 3.9
percent increase is forecast, to reach $112.56 billion in 2008, rising 4.2
percent in 2009 to reach $117.25 billion.

The Asia Pacific will see
an 8.2 percent increase this year to $106.98 billion, with growth slowing to
6.5 percent in 2009, when ad expenditures are expected to reach $113.9 billion.

In Central and Eastern
Europe, expenditures are forecast to rise 18.3 percent to $34 billion this
year, and 16.2 percent in 2009 to reach $39.5 billion.

In Latin America, a
13.3-percent growth rate is predicted for 2008, with ad expenditures forecast
at $29 billion, rising a further 10 percent in 2009 to reach $31.9 billion.

In Africa, the Middle East
and the rest of the world, ad expenditures will rise 12.4 percent this year to
$18.7 billion and 17.4 percent next year to $21.98 billion.

The U.S. will remain the
biggest ad market from now until 2010, when ad expenditures are forecast to be
$194.1 billion. Japan will remain the second-largest market with $43.9 billion
and the U.K. the third with $27.9 billion. By 2010, however, China will rise to
fourth place with $24.3 billion, Brazil will rise from ninth to seventh place
with $14.2 billion, and Russia will crack the top ten with $17.2 billion in
expenditures.

By medium, television’s
share is expected to remain flat, with 37.8 percent this year, dropping
slightly to 37.6 percent in 2010. The Internet is expected to account for 9.7
percent of the pie this year, rising to 11.1 percent in 2009 and 12.3 percent
in 2010 with revenues of $67 billion.

—By Mansha Daswani