Global Adspend Not Expected to Rise

LONDON, December 8: As the
current financial downturn continues to take its toll across the industry, ZenithOptimedia has
reduced its forecast for adspend in 2009 from a 4-percent growth to a
0.2-percent decline.

Ad
expenditure is expected to decline 5.7 percent in North America in 2009, and 1
percent in Western Europe, compared to previous forecasts of 0.9-percent growth
and 2.6-percent growth, respectively, from the report published just two months
ago.

Still
expected to see growth, however, are Asia Pacific and Central and Eastern
Europe, though at a slower rate than previously projected. Forecasts dropped
from 5.2 percent to 3.2 percent for Asia Pacific, and from 12.7 percent to just
1.5 percent for Central and Eastern Europe, spurred by the uncertain economic
conditions of markets like Hungary, Turkey and Ukraine.

The
report still projects 14.9-percent growth in Latin America, and 11.2-percent
growth in the rest of the world. Among the emerging 'BRIC' markets, continued
growth is expected in 2009: from 5 percent for Russia, through 9 percent in
China and 13 percent in India, to 30 percent in Brazil.

Global
adspend is expected to recover though in the years to come. Over the course of
2010, global ad expenditure is projected to grow 5.5 percent, followed by
5.8-percent growth in 2011. Though the disparity of growth rates between the
developed world (which is defined as North America, Western Europe and Japan)
and the developing world (defined as everywhere else) will continue. Developing
markets are estimated to contribute 89 percent of all ad expenditure growth
between 2008 and 2011, and increase their share of the global ad market from 30
percent to 36 percent over this period.

Continuing
to grow rapidly is Internet advertising. The segment is still expected to grow
18 percent in 2009, including 18-percent growth in North America and 12 percent
in Western Europe. The Internet is expected to account for a 15.6-percent share
of global adspend in 2011, 5.2 percentage points ahead of magazines and 5.6
points behind newspapers. Television is expected to
attract a record 38.5-percent share of global adspend in 2010 and 2011.

—By
Kristin Brzoznowski