TV adspend to remain strong over long term

by Daniel Farey-Jones, Brand Republic 03-Mar-08, 11:00

LONDON - Television's share of global advertising budgets will be the same in 2012 as it was last year, with other media losing share to online, according to media research firm Screen Digest.

In its global forecast, Screen Digest says that clients will eat into their print, radio and cinema budgets to divert the money to online and digital TV over the next five years.

Traditional TV channels will lose share to digital channels, which it expects to experience growth rates of 20% per annum. It expects online spend will grow at 17% per annum.

TV adspend will hold up this year only because of the boost from the quadrennial effect of the Olympics, US presidential election and European football championships.

Without that effect, Screen Digest says there will be a recession in TV adspend in 2009 as marketing budgets are slashed, especially in the US. It predicts 1.5% growth in US TV adspend in 2008 followed by a 2% fall in 2009.

However, it believes the outlook will improve from 2010 onwards as the US and European economies pick up.