Study: Newspapers may lose more global ad share in next two years
By Erina Lin, Thursday 4 October 2007 at 22:24 :: Advertising :: #652 :: rss
Although the Olympics will drive worldwide ad spending next year, newspapers' share of the global advertising market by 2009 will drop to 26.2 percent from 29.0 percent in 2006, according to a ZenithOptimedia study released Thursday.
"Newspapers are suffering the most from the depredations of the Internet, which is better at delivering timely news and is an efficient substitute for newspaper classifieds," the survey states.
The study brought more bad news for U.S. newspapers - the nation's total spending on advertising will grow just 2.5 percent, down from the modest 3.3 percent growth ZenithOptimedia forecast earlier this year. "The continued slump in the U.S. housing market has led to a sharp drop in property and construction advertising, particularly property classifieds in newspapers," the study added.
Internet advertising will grow strongly at 85 percent in the next two years, but still account for less than 10 percent of global ad share by 2009. ZenithOptimedia expects Internet advertising to account for 9.5 percent of all expenditure in 2009, growing from 6.1 percent in 2006.
Another old medium, TV, will be one of the big ad gainers over the next few years.
"Television faces many challenges - the spread of PVRs (personal video recorders); migration of viewers from premium mass-audience channels to cheaper specialist channels; and competition from the Internet, to name three of the biggest," the agency said. "Despite all these, television will increase its share of global ad expenditure from 37.9 percent in 2007 to 38.2 percent in 2008, an all-time record."
ZenithOptimedia predicts TV will actually lose market share in older markets, especially in North America, where it is expected to decline 0.3 percent to 32.4 percent of ad share, and Western Europe, where it will drop 0.5 percent in share to 30.4 percent. Those drops, however, will be more than compensated by increases in Asia, especially as a result of the 2008 Olympics in Beijing.
With the help from digital technology, outdoor will increase its share worldwide to 5.6 percent from 5.9 percent, ZenithOptimedia predicts. "New digital displays make it easy for advertisers to book and distribute eye-catching ads at short notice," the study said.
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