ZenithOptimedia predicts global ad spend to grow in 2010
LONDON - ZenithOptimedia is predicting global ad markets will increase 0.9% in 2010 to almost $448bn (£274bn) and expects ad expenditure to show steady improvement over the next three years, with growth of nearly 5% by 2012.
The global spending prediction is the Publicis agency's first upward revision in 18 months and comes after the worst ad decline in modern times.
Zenith also predicts ad spend to fall 10.2% in 2009 to nearly $444bn.
The media agency, which along with GroupM is to present its forecasts during the morning session at today's UBS media conference in New York, foresees further spending declines in North America and western Europe next year, although the decreases are expected to be significantly smaller than the sharp falloffs occurring this year.
For 2009, Zenith said it expects spending in North America to be down 12.7% to about $157bn and western Europe to be down 11.8% to $106.8bn.
By comparison, in 2010 North America is expected to fall 2.4% to $153bn, western Europe is predicted to be down by 0.5% to $106.2bn, while all other regions are expected to grow.
"We expect the recovery to strengthen steadily as corporate and consumer confidence continue to improve," ZenithOptimedia said.
Zenith reports that the internet will be the only medium to grow global ad spending in 2009. It is expected to rise by 9.5% this year, followed by 12% to 13% annual growth through the next three years.
Last week, GroupM upwardly revised its UK ad spend forecast for 2009, predicting ad expenditure to fall 12% this year. The WPP group had forecast a 14% drop in its midyear report in June.
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