Global advertising expenditure is on target to reach $370 billion for the year, beating previous forecasts and proving 2004 to be an outstanding year for advertising expenditure in traditional media, according to Zenith Optimedia’s global forecasts released today.
Forecasters have long been predicting the positive impact of the Olympic Games and the US presidential elections on the advertising market, but ZenithOptimedia’s new upbeat forecasts show that, with a growth of 6.9% compared to 2003, this year is well above global economic growth of 4.7%.
The media agency figures show that advertising spend in Europe rose by 5.4% in 2004 and currently accounts for 26% of the global advertising market ($94.4 billion). This figure is set to rise by another 4.5% in 2005. However, these forecasts show Europe to still be lagging behind the rest of the world in terms of advertising growth and, should current rates of growth continue, is set to be overtaken by Asia-Pacific within the next ten years. Asia-Pacific will finish the year up 8.5% at $75.6 billion.
North America is witnessing growth of 6% for the year, to $167.9 billion; Latin America is up 11.7% to $15.9 billion; and Africa and the Middle East is up 15.1% to $16 billion.
China is predicted to become a $12 billion market by 2006 and the agency has forecast this will double by 2011, when it will become the world’s third largest advertising economy after the US and Japan, overtaking both the UK and Germany.
As suggested last month (see Internet Spending To Rocket In 2005), ZenithOptimedia forecasts the internet to be the fastest growing medium. Rising penetration, its increasing use for both response and brand advertising and the ever-growing versatility and variety of online content and applications are all contributing factors to this exponential growth. ZenithOptimedia suggests that, while the internet has a modest 3.6% share of global advertising in 2004, the medium is likely to account for more advertising spend than outdoor by 2010.
| Advertising Expenditure by Major Media (US$ million, current prices) |
| |
2003 |
2004 |
2005 |
2006 |
2007 |
| North America |
158,383 |
167,869 |
174,823 |
183,938 |
193,483 |
| Europe |
89,531 |
94,354 |
98,607 |
103,622 |
108,483 |
| Asia/Pacific |
69,646 |
75,564 |
80,100 |
85,442 |
91,467 |
| Latin America |
14,238 |
15,901 |
16,674 |
17,711 |
19,005 |
| Africa/M.East/ROW |
13,922 |
16,022 |
18,070 |
20,155 |
22,126 |
| World |
345,720 |
369,710 |
388,274 |
410,868 |
434,574 |
| Source: ZenithOptimedia, December 2004 |
| Major Media (newspapers, magazines, television, radio, cinema, outdoor, internet) |
| |
|
|
|
|
|
|
| |
|
2003 v 02 |
2004 v 03 |
2005 v 04 |
2006 v 05 |
2007 v 06 |
| North America |
|
1.9 |
6 |
4.1 |
5.2 |
5.2 |
| |
of which USA |
1.7 |
6 |
4.2 |
5.3 |
5.2 |
| Europe |
|
1.4 |
5.4 |
4.5 |
5.1 |
4.7 |
| Asia/Pacific |
|
5.0 |
8.5 |
6 |
6.7 |
7.1 |
| Latin America |
|
3.7 |
11.7 |
4.9 |
6.2 |
7.3 |
| Africa/Middle East |
|
19.1 |
15.1 |
12.8 |
11.5 |
9.8 |
| World |
 |
3.0 |
6.9 |
5 |
5.8 |
5.8 |
| Source: ZenithOptimedia, December 2004 |
Related Links
