Report: Global ad spending to see improvements in 2010
Posted by Simon Day on July 6, 2009 at 12:46 PM
The global advertising slump is predicted to plateau and even report small growth in 2010, according to media agency ZenithOptimedia, Reuters reported Monday.
Zenith has also revised its prediction for 2009, slightly reducing the initially expected decline of 6.9 percent.
Zenith has also revised its prediction for 2009, slightly reducing the initially expected decline of 6.9 percent.
"Faced with extreme uncertainty, advertisers in most sectors planned
for the worst and cut their costs in anticipation of steep drops in
revenue," the ZenithOptimedia report stated, according to the Reuters report. The report also shows the Internet as
the only medium that is expected to have any growth in advertising in
2009.
Advertisers have found the Internets ability to monitor consumer response and its flexibility particularly important during the industry slump.
The report estimates the Internet to experience a 10 percent growth in advertising spending for 2009. The company further predicted online advertising to account for 15.1 percent of all advertising expenditure by 2011, up from 10.5 percent recorded in 2008.
"Most of this growth will come from paid search, which is an ideal method of reaching consumers looking for bargains," the report stated. "In the U.S. we predict search advertising to grow 20 percent in 2009, while traditional display grows 3 percent and classified grows just 1.8 percent."
Print is the biggest area to suffer from the Internets growth. Newspaper advertising is forecast to fall 14.7 percent and magazines will be even worse hit as luxury advertising is significantly reduced, Reuters reported in an article posted by Guardian.co.uk.
According to ZenithOptimedia, other sectors to struggle were the finance, automotive and business travel. "Fast-moving consumer goods and value products," held up better during the global financial downturn.
"For all sectors the shape of the rest of the year is becoming clearer," it said. "Q2 was not quite as tough as Q1, and we have held our expectations for the rest of the year steady, as signs emerge that the downturn is approaching its nadir."
In 2010 Zenith has forecast a general recovery, with a global increase of 1.6 percent, however those hit the hardest will take longer to turn around.
"Looking at the different regions, those that went into the ad downturn first will suffer the most and come out of it last. We expect North America to shrink a further 2.4 percent in 2010, after shrinking 3.7 percent in 2008 and 10.3 percent in 2009."
Advertisers have found the Internets ability to monitor consumer response and its flexibility particularly important during the industry slump.
The report estimates the Internet to experience a 10 percent growth in advertising spending for 2009. The company further predicted online advertising to account for 15.1 percent of all advertising expenditure by 2011, up from 10.5 percent recorded in 2008.
"Most of this growth will come from paid search, which is an ideal method of reaching consumers looking for bargains," the report stated. "In the U.S. we predict search advertising to grow 20 percent in 2009, while traditional display grows 3 percent and classified grows just 1.8 percent."
Print is the biggest area to suffer from the Internets growth. Newspaper advertising is forecast to fall 14.7 percent and magazines will be even worse hit as luxury advertising is significantly reduced, Reuters reported in an article posted by Guardian.co.uk.
According to ZenithOptimedia, other sectors to struggle were the finance, automotive and business travel. "Fast-moving consumer goods and value products," held up better during the global financial downturn.
"For all sectors the shape of the rest of the year is becoming clearer," it said. "Q2 was not quite as tough as Q1, and we have held our expectations for the rest of the year steady, as signs emerge that the downturn is approaching its nadir."
In 2010 Zenith has forecast a general recovery, with a global increase of 1.6 percent, however those hit the hardest will take longer to turn around.
"Looking at the different regions, those that went into the ad downturn first will suffer the most and come out of it last. We expect North America to shrink a further 2.4 percent in 2010, after shrinking 3.7 percent in 2008 and 10.3 percent in 2009."
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