However, growth continues to strengthen elsewhere, and Zenith increased its forecasts for the rest of the world from Other key highlights from the forecast: Developing market dynamism will maintain global ad growth above ten-year average despite sluggish growth in the developed world.
Global ad expenditure forecast to grow 4. We then expect ad expenditure to grow 5.
Every four years the quadrennial events — the summer Olympics, the European Football Championship and the US Presidential and other elections — provide a reliable boost to the global ad market.
Without this extra stimulus, ad expenditure would grow 3. The global ad market is therefore remarkably strong at a time when the eurozone threatens to fall back into recession and drag down the growth of its trading partners.
In general, advertisers have built up large cash reserves and — thanks to exceptionally low interest rates in the developed world — are earning very little interest on this cash. Marketers have the lessons of the last downturn fresh in their minds, in particular that downturns are a great time to expand market share.
During an economic downturn consumers fundamentally reassess their spending habits, partly to save money, and partly as a way of treating themselves to affordable luxuries in times of gloom.
Brands that gain the loyalty of consumers in a downturn can reap the benefits for years to come. We therefore expect advertisers to invest their cash reserves in competition for market share, and as a way of stimulating extra consumption.
Western Europe is at the centre of the current economic turmoil, and we forecast it to grow by just 2.
Assuming the economy improves by the end of next year, we forecast 2. Our forecast assumes that GDP continues to slow in the eurozone and the rest of Western Europe towards the end of and the beginning However, the economic situation is extremely uncertain and could get even worse, so we have considered the potential effects of a further deterioration of the debt crisis in Europe.
This would clearly depress advertising in the eurozone and its main trading partners, but its impact on global growth should be limited.
Looking at previous examples of countries defaulting on their debts such as Russia in or Argentina inand the wider regional effects of this default, we estimate that a default in two eurozone countries, coupled with deeper recession in the eurozone and other Western European markets, would bring growth in Western Europe down to North America now looks decidedly healthier than Western Europe.
In the US, industrial production and employment growth are on the rise, and foreclosures are down.
Canada has performed strongly throughout the downturn. We predict ad expenditure to grow 3. After this one-off stimulus we expect Japanese growth to fall back to 1. Over the next three years we expect Asia Pacific excluding Japan to grow by an average of Overall we expect developing markets — which we here define as everywhere outside North America, Western Europe and Japan — to increase their share of the global ad market from Currency conversion at average rates.Zenith forecasts advertising expenditure on social media to reach US$55bn in , overtaking advertising expenditure on printed newspapers, which will total US$50bn.
Social media advertising is the fastest-growing component of internet advertising - it grew 51% in , and we forecast it to grow at an average rate of 20% a year to ZenithOptimedia predicts that global ad spending will rise percent to $ billion in , up from $ billion in The estimated growth is a reflection of the global economy’s.
Beyond that, Zenith’s online forecast has the internet taking a percent share of global ad dollars in , percentage points ahead of magazines and points behind newspapers, after having narrowed the gap from points in LONDON (REUTERS) - Surging growth in advertising via mobile phones and tablet computers will help Internet advertising overtake television as the dominant medium for global ad spending by , a.
Zenith Optimedia Group Limited Advertising Expenditure Forecasts June ZenithOptimedia predicts global ad expenditure will grow % in , reaching US$ billion by the end of the year. Our forecast for is down very slightly from the March edition (by Forecast by leading advertising markets.
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