In November, a forecast by Enders Analysis predicted that total UK ad spend would fall by 12% in 2009, with TV ad spend expected to be down 10% next year and 4% in 2010.
Despite small growth of 2% predicted for 2011, between 2007 and 2010 TV ad spend will have fallen by 19%, said Enders Analysis (see
UK ad spend to fall by 12% in 2009).
However, ZenithOptimedia predicted that UK TV ad spend would fall by 6% this year and 3% in 2009, before seeing growth of 2% in 2010 and 1% in 2011 (see UK TV ad spend to fall this year and next).
It added that ad revenues for the main UK terrestrial channels will decline 7% in 2009.
November did provide some good news for TV, with Ofcom research revealing that the UK is one of the most digitally advanced nations in the world (see UK leads digital TV revolution).
Not only do 86% of UK households now have digital TV on their main set, but services like HDTV and digital video recorders are also growing in popularity, the regulator said.
The latest IPA Trends in Television Report was also encouraging, showing that the overall UK television viewing audience continues to show year-on-year growth.
Average hours of television viewing for the third quarter of 2008 was 3.54 hours, compared to 3.38 in 2007. This is the highest level recorded for this quarter since the start of the current BARB panel in 2002, said the IPA (see UK Television audience continues to grow).
Looking at the US, Nielsen’s A2/M2 Three Screen Report showed that TV usage there has hit an all time high (see TV usage in the US reaches an all-time high).
The report found that the average person in the US watched approximately 142 hours of TV in one month, while the average time a US home used a TV set during 2007-08 is up to eight hours and 18 minutes per day.
The Nielsen report also found that people who used the internet were online for around 27 hours a month.
Last month saw the publication of eMarketer’s revised projection for US online ad growth, benchmarked against the latest Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers (PwC) data, putting online ad spending at $25.7 billion in 2009, just 8.9% over the $23.6 billion forecast to be spent in 2008 (see eMarketer revises down US online ad growth).
Earlier in November, American banking giant JP Morgan reduced its online advertising forecast for the second time in two months, estimating an annual growth rate of 25% in 2008 and 13% in 2009, down from 28% and 19%, respectively (see JP Morgan reduces online ad forecast).
The firm added that the global display ad market should expand 14% in 2008 versus its prior projection of 16%.
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