ZenithOptimedia: Global Adspend to Grow 6.7 Percent in 2008

LONDON, December 3: According to ZenithOptimedia, global ad
expenditure will grow 6.7 percent in 2008, up from 5.3 percent in 2007, thanks
to the Olympic Games, elections in the U.S. and European football.

The housing downturn and credit squeeze will have an impact
on property and finance advertising in economies like the U.S. But
ZenithOptimedia notes that the ad market will be boosted by $6 billion in
spending from “quadrennial” events in 2008, with $3 billion to come from the
Olympics, $2 billion from the Presidential and congressional elections in the
U.S., and $1 billion from Euro 2008. The quadrennial events account for almost
all of the acceleration in 2008; without it, growth would remain flat at 5.4
percent.

Internet advertising will be worth $36 billion this year, $5
billion more than ZenithOptimedia had predicted in December 2006, and is
expected to grow 24 percent in 2008. Between 2007 and 2010, Internet adspend
will rise 69 percent, reaching $61 billion in 2010 and increasing its market
share from 8.1 percent to 11.5 percent. Meanwhile, traditional media will grow
5 percent and 14 percent respectively over the same periods. All media are
growing, but apart from the Internet, only cinema and outdoor will gain share
over this period.

The report also found that developing markets, which include
all markets outside of North America, Western Europe and Japan, have taken over
as the biggest contributors to adspend growth. North America is growing at only
3 to 4 percent a year, Western Europe is growing at 5 percent a year, and Japan
is barely growing at all (0 to 2 percent a year over ZenithOptimedia’s forecast
period). By contrast, developing markets are growing at double-digit rates.
Between 2007 and 2010, ZenithOptimedia forecasts developing markets to add an
extra $49.5 billion to the world ad market, while the developed markets add
$37.5 billion. Developing markets are expected to contribute 26 percent of
global adspend in 2007, and 31 percent in 2010. Russia is currently the
14th-largest ad market in the world, but ZenithOptimedia predicts that it will
rise to sixth by 2010. It also expects China to overtake Germany to become the
fourth-largest ad market.

—By Irene Lew