Advertising Market Looks Set To Grow By 6.2%
ZenithOptimedia has revised upwards it global advertising spending forecast for this year from 4.2% to 6.2% as world-wide advertising confidence holds despite oil and consumer uncertainties.
After Zenith’s cautious forecasts in April, the group returned to its crystal ball and has revised all global predictions upwards. The updated report says, by 2005 the global advertising expenditure growth target is now set at 6.2%, up from April’s prediction of 3.4%, while 2006 has been revised upwards from 3.8% to 5.6%.
By 2005, growth in European advertising expenditure is expected to overtake the US, however despite significant gains made by Europe, expectations for this continent continue to drag behind the world-wide average for the next few years.
This year, the advertising market in Europe is expected to grow by 4.7%, although tying with Latin America, it pales in comparison to North America which is forecast to rise by 6.0% and Asia Pacific with a predicted 7.3% increase. However, the clear winner in 2004 in terms of growth is Africa and the Middle East with a 13.4% year-on-year growth anticipated.
By 2005, growth is expected to slow down in all regions, except for Latin America but the good news for Europe is that it is predicted to outgrow the US next year in terms of advertising expenditure to reach a 4.4% increase, compared to America’s 4.2%.
Asia Pacific, Africa and the Middle East are also expected to be hit by the dip in advertising expenditure, with 2005 growth falling to 5.7% and 11.3% respectively. However, Latin America is expected to grow by 5.2%, despite Zenith saying that it is at greater risk of recession than any other region because of bank collapses and political instability.
The recovery continues well in to 2006, with Zenith predicting a 5.6% world-wide growth. Europe, which is expected to grow by 5.1%, is predicted to continue outstripping the US, which will grow by 4.8%. Significant gains are also expected from other regions, as Asia Pacific is predicted to grow by 5.5%, Latin America 6.7% and Africa and the Middle East 11.2%.
ZenithOptimedia: 020 7224 8500 www.zenithoptimedia.com
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