Ad spend to rise in 2012
|06 Dec 2011 5:03 GMT||Back|
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The global advertising market is set to grow next year, despite the challenging economic climate, says ZenithOptimedia’s latest report.
ZenithOptimedia expects a 4.7% increase in global ad spending in 2012, compared to a 3.5% rise in 2011. Although this is down from the media agency’s October forecast when it predicted 5.3% growth for 2012, it is encouraging considering the ongoing Eurozone crisis.
Much of the growth is attributed to the quadrennial events in 2012, such as the Olympics, European Football Championships and the US Presidential elections.
However, Western Europe is expected to grow by only 2% in 2012, despite the London Olympic Games.
Head of forecasting at ZenithOptimedia, Jonathan Barnard, said: “Since October we’ve seen the euro zone market failure, which has darkened our prediction a lot in Western Europe and the euro zone,” he said. “But I was surprised that globally, the prediction is quite positive.”
Most of the growth is in developing markets, with two of them (China and Brazil) now in the top 10 of ad markets, and Russia is expected to join them by 2013.
ZenithOptimedia predicts that internet advertising will account for 52.9% of the growth in total expenditure between 2011 and 2014.
The internet is the fastest growing medium, with display advertising its fastest growing segment, according to Marketing Week.
The report also says overall internet advertising is predicted to increase share from 15.9% to 21.2% in 2014.
After the internet, television is the main contributor, while newspapers and magazines will continue to see their share decline.
Barnard also said that advertisers have more cash to play with. “Interest rates are so low that it is not a good time to invest cash in the bank. But marketing is a great way of generating growth in a downturn.
“It's a time when consumers have less money and will consider switching their loyalties in order to save money.”