ZenithOptimedia upgrades UK ad forecast to 3.5% growth
ZenithOptimedia has upgraded its UK advertising forecast with the total ad market expected to post 3.5% year on year growth for 2012 – up from its March prediction of 3.2% growth.
Globally, ZenithOptimedia has also released a revised forecast for growth – with spend of 4.8% to $489 billion.
“This upgrade is a result of two factors: signs that large companies are investing more in marketing to drive growth, and a reduced risk of disastrous collapse in the Eurozone, even though its short-term economic performance has deteriorated,” the media buying network said.
In the UK, ZenithOptimedia has increased its online advertising forecast to double-digit year on year growth of 10.3% – up from its March forecast of 9.3%. This equates to a £200 million upgrade in the amount of ad spend expected to flow into digital media in the UK.
“Internet advertising continues to drive most of the growth in the UK ad market, and we expect it to attract 35% of expenditure this year, more than anywhere else in the world,” said Steve King, ZenithOptimedia’s worldwide chief executive.
However, ZenithOptimedia’s latest advertising forecast predicts that TV with grow by just 0.5% year on year in 2012 to £3.3 billion. The revised forecast for TV, which is half of its original outlook, follows concern that commercial broadcasters will not benefit from the “summer of love” – from events such as the Euro 2012 tournament and the Olympics – as much as expected.
King said that the downgrade to TV ad forecasts was because of a decline in spending from retailers and fast-moving consumer goods companies. In March, ZenithOptimedia said it expected UK TV ad revenue to grow by 1%.
ZenithOptimedia maintained its forecast for the UK newspaper industry, which it thinks will see a 1.7% year on year decline in ad spend this year.
Radio advertising is predicted to grow by 2.4%, while outdoor advertising is forecast to enjoy a 4.9% year on year boost in ad spend.
ZenithOptimedia’s forecast for growth in global advertising spend has been attributed to spend in fast-developing Latin America and Asia Pacific markets compensating for a weakening of spend in Europe.
ZenithOptimedia has downgraded 2012 ad spend growth in Western Europe from 2% year on year to 1.5%, and for central and eastern Europe from 8% to 6.5%.
Asia Pacific ad spend growth has been upgraded from 7.2% to 7.4% and Latin America from 6% to 9.2%.
ZenithOptimedia predicts that global ad spend will grow by 5.3% in 2013 and by 6.1% in 2014.