Global Adspend Forecast to Rise 6.6 Percent

LONDON, June 30:
ZenithOptimedia forecasts that global advertising expenditure will rise 6.6
percent this year to $517.5 billion, driven by gains in the Asia Pacific,
Central and Eastern Europe, Latin America and other developing markets.

The research firm has
downgraded its 2008 growth forecasts for North America and Western Europe to
3.5 percent and 3.7 percent, respectively, while projections for the rest of
the world were upgraded from 11.1 percent to 11.8 percent. The growth rate is
forecast to be 8.5 percent for the Asia Pacific, 17.4 percent for Central and
Eastern Europe, 17.5 percent for Latin America and 12.8 percent for Africa, the
Middle East and the rest of the world.

The North American ad
market will be worth $195 billion this year, ZenithOptimedia says, followed by
Western Europe with $124.4 billion. Asia Pacific is expected to generate $111.5
billion in ad revenues, while $37 billion is expected for Central and Eastern
Europe. Adspend in Latin America is forecast to hit $30.9 billion. In Africa,
the Middle East and the rest of the world, adspend is projected to reach $18.6
billion.

Developing markets will
contribute 62 percent of ad expenditure growth between 2007 and 2010, and
increase their share of the global ad market from 27 percent to 33 percent. The
U.S. will remain the biggest contributor to global adspend growth in this
period, with $17.7 billion, reflecting a 9.9-percent growth rate. Second will
be China with $10.2 billion and a 63.5-percent growth rate, followed by Russia
with $8.2 billion and a 92.1-percent growth. Rounding out the top five are
Brazil with $7.7 billion and 79.6-percent growth and the U.K. with $5.8 billion
and 22.8-percent growth. Also in the top ten are India, Japan, South Korea,
South Africa and the Philippines.

The U.S. will also remain
the biggest ad market by 2010, followed by Japan in third place. The U.K. is
expected to move up to third place, with Germany in fourth and China in fifth.
The other countries ranked among the top ten ad markets in 2010 will be Brazil,
Russia, France, Italy and South Korea.

Television advertising
revenues will reach $192 billion this year, $201.9 billion in 2009 and $213.2
billion in 2010, with its share of the market at around 37 percent. The
Internet, meanwhile, is expected to expand its share from 10.2 percent this
year to 13.6 percent in 2010.

—By Mansha Daswani