ZenithOptimedia: Ad Growth Rates to Return to Pre-Crisis Levels

LONDON: A new report from ZenithOptimedia projects that global advertising growth rates will return to pre-financial-crisis levels, boosted by stronger economies, Internet advertising and mobile, but television will remain the most dominant medium.

From a 3.9-percent growth rate in 2013 and a forecast 5.5-percent rate in 2014, ZenithOptimedia projects a 5.8-percent rise in 2015 and a 6.1-percent hike in 2016.

This year, ad spent will be given a boost by the Winter Olympics, the World Cup and American midterm elections, all of which will benefit TV in particular. Furthermore, there appears to be more stability in the Eurozone, giving advertisers more confidence. "In general, advertisers are in a strong position to invest in expansion, with large reserves of cash and high profitability," ZenithOptimedia said.

Discussing the Eurozone in particular, ZenithOptimedia cited a 15-percent drop in ad spend since the financial crisis began in 2007. In 2013, advertising in the Eurozone fell by 3 percent. This year, ZenithOptimedia sees a 0.7-percent rise, its first year of growth since 2010. Finland, Italy and Greece are still shrinking, but should stabilize next year, helping the Eurozone accelerate to 1.6-percent growth in 2015 and 1.7 percent in 2016.

Television remains the most dominant ad medium, commanding a 40-percent share in 2013. Television advertising is expected to grow by 5.2 percent in 2014. Internet is the fastest-growing medium, led by display ads. ZenithOptimedia also sees strong gains for mobile advertising.

"Advertisers are gaining in confidence as the world economy returns to stable growth," said Steve King, ZenithOptimedia’s worldwide CEO. "They will find plenty of opportunities to generate strong returns on their advertising investment in the fast‐growing digital media, but should remember that television has lost none of its power to reach large and engaged audiences."