Olympic Games To Lift TV’s Share Of Global Ad Market

Between 2006 and 2009, internet adspend is forecast to grow 85% and raise its market share from 6.1% to 9.5%.

US growth has been downgraded to 2.5% in 2007 from 3.3% after the credit squeeze and the continued slump in the housing market.

ZenithOptimedia says that despite the challenges facing TV, it will increase its share of global ad expenditure from 37.9% in 2007 to 38.2% in 2008, an all time record.

In fact, TV is losing market share in many countries in Northern America and Western Europe. In 2008, Zenith expects TV’s share of ad expenditure to fall 0.3 percentage points to 32.4% in North America, and 0.5 percentage points to 30.4% in Western Europe.

However, the faster growth of ad markets in the rest of the world is counteracting this trend.

Zenith’s forecasts for internet advertising have been revised upwards again: it now forecasts 29.9% growth this year,(up from 28.6% three months ago) and 85% growth between 2006 and 2009 (up from 82%). Internet advertising is now expected to account for 9.5% of all expenditure in 2009, fractionally up from the 9.4% Zenith forecast three months ago.

Newspapers’ share of world ad expenditure is expected to fall from 29.0% in 2006 to 26.2% in 2009. By contrast, outdoor is forecast to increase its market share from 5.6% to 5.9% over the same period.

According to Zenith, the continued slump in the US housing market has led to a sharp drop in property and construction advertising, particularly property classifieds in newspapers. This, and the recent credit squeeze, has led it to downgrade its forecast for growth in the US this year from 3.3% to 2.5%.

A recent report from TNS Media Intelligence said that total US advertising expenditures in the first half of 2007 slipped by 0.3% to $72.59 billion versus the same period in 2006 (see US Adspend Slips 0.3%).

Zenith’s forecasts for Western Europe, Asia Pacific and Latin America this year are largely unchanged. Central and Eastern Europe and the Middle East – already the stand-out growth regions – have been upgraded again.

It now expects Central & Eastern Europe to grow 18.3% this year (up from 16.9% three months ago) and Africa/Middle East/Rest of World to grow 17.2% (up from 15.6%).

Eight of the ten fastest-growing markets in the world are in Central and Eastern Europe; the other two are in the Middle East.

A recent forecast from OPera Media predicted that continued strong increases from the online search and classified sectors would see UK total advertising spend increase by 3.3% this year (see UK Adspend To Increase By 3.3% In 2007).