ZenithOptimedia Downgrades UK Ad Growth Forecast
ZenithOptimedia has downgraded its expectations for 2006 UK advertising growth by 2.0% points, and has also downgraded its expectation for 2007 by 1.1% points, while 2008 growth will remain flat at 4.6%.
Analyst Merrill Lynch says that the weakness in 2006 is predominantly due to a 5.0% downgrade to ZenithOptimedia’s growth expectation for TV advertising, while 2007 is more broadly based (newspapers -2.4% pts, TV -1.5% pts, magazines -1.2% pts and outdoor -1.0% pts).
The internet is expected to have a 12.9% share of total UK adspend, growing to 17.2% by 2008, with Merrill Lynch adding that the shift online and generally weak ad market has been underpinned by a weak ITV.
ZenithOptimedia also downgraded its forecast for TV advertising growth, by 5.0% points to -4.0%, although 2007-08 was unchanged at 1.0% and 2.0% growth respectively.
