ZenithOptimedia Predicts Ad Growth of 4.6 Percent

LONDON: Global advertising spending is expected to grow 4.6 percent in 2013, predicts ZenithOptimedia, led by developing markets and digital media.

Ad spending is predicted to reach $525 billion by the end of 2013. Developing markets are expected to grow by 8 percent on average in 2013. Central and Eastern Europe is set to rebound, with 7.4 percent growth in 2013. The Asia Pacific, excluding Japan, is set to grow by 8.2 percent. Latin America is forecast for an increase of 10.1 percent.

North America had a strong 2012, thanks to the Olympics and political advertising. Even with the comparison, next year is expected to see an increase of 3.6 percent.

The Internet is expected to be the largest contributor of new advertising dollars. Between 2011 and 2014, Internet advertising is predicted to account for 60 percent of the growth in total expenditure. TV is the next largest segment, forecast to contribute 41 percent of the growth. Television’s share of the global ad market continues to rise steadily. It reached 40.2 percent in 2011, up from 36.0 percent in 2005. Given the European football championship, the Summer Olympics and the U.S. elections, TV’s share of ad spend for this year is expected at 40.4 percent, its highest ever.

“Advertisers are broadly continuing to invest, despite the global economic concerns and issues,” said Steve King, the global CEO of for ZenithOptimedia Group. “However, they are seeking to ensure that any expenditures are delivering strong return on investment. The U.S. continues to deliver solid growth. This, combined with the growth in developing markets and in digital media, has helped mitigate the drop in euro zone spending.”