ZenithOptimedia downgraded its UK ad forecast for 2008 and 2009 in October, predicting that significant would return in 2010.
It forecast that total UK adspend would fall 2.1% this year, with an increase of 1.5% expected in 2009, down from its June prediction of 5.6% growth (see
UK Adspend Forecast Downgraded By ZenithOptimedia).
Zenith also lowered its global adspend forecast, estimating that global adspend would grow 4.3% in 2008, down from its June forecast of 6.6%, as the worldwide financial crisis hits the sector.
,p>World adspend growth for 2009 was also downgraded, from 6% to 4%, with developed markets hardest hit by the reduced liquidity in the financial markets: growth forecasts for 2008 and 2009 were cut by half in North America and Western Europe (see ZenithOptimedia Lowers Global Adspend Forecast).
The IPA’s latest Bellwether Survey found that in Q3 annual marketing budgets were revised down to the greatest extent ever recorded in the survey’s nine year history (see Q3 2008 Bellwether Report: Marketing Budgets Cut Again).
The cut was the fourth successive quarterly reduction in spend and points to a marked deterioration in business conditions since the summer.
All marketing categories saw downward revisions with the exception of the internet, but even this category saw budget expenditure for the year hold steady. Internet search was the only category to see an increase yet the rise was only marginal.
At the start of the month, figures from the Internet Advertising Bureau revealed that UK internet advertising expenditure grew to £1.68 million in the first half of 2008, a 21% year-on-year like-for-like increase (see Internet Advertising Spend Up 21%).
Without the growth shown by online, the advertising market as a whole would have experienced a 4.6% decline in the first-half of the year rather than the actual 0.7% year on year fall.
Nielsen, meanwhile, released research showing that UK online ad display spend was down 5.28% for Q2 2008 (see Online Display Adspend Down 5.28% For Q2 2008).
Alex Burmaster, communications director for the UK and EMEA at Nielsen Online, said: “The figure shows the rate of growth is slowing, which will happen naturally. We won’t see the increases of yesteryear now the internet is ore mainstream. But this isn’t helped by the economic crisis.”
The IAB and PricewaterhouseCoopers Internet Advertising Revenue Report found that US internet advertising revenues for the first six months of 2008 were $11.5 billion, setting yet another new half-year record representing a 15.2% increase over the first half of 2007.
The report also revealed that Q2 2008 revenues were up 12.8% over the same period of 2007 and showed a slight decline of 0.3% from the first quarter (see US Internet Ad Revenues Up 15.2%).
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