TV advertising forecast to outperform other media in 2010
TV advertising is predicted to outperform other traditional media this year, according to analysts at Screen Digest.
It said that in 2010 the return of economic stability will be mirrored by a stabilisation of ad spending at -1.2% on average in Europe.
However Screen Digest’s econometric model suggests that a minimum GDP growth of two to three per cent (at current prices) is historically required to trigger any advertising spending recovery – and economic forecasts from IMF currently remain short of this figure.
Vincent Letang, Screen Digest’s head of advertising intelligence, said: “Although business confidence indexes have been improving since March 2009, the ‘green shoots’ heralded in Q4 for TV advertising failed to materialise. With no advertisers expected to bring their expenditure to pre-2009 levels, Screen Digest remains cautious about the prospects for 2010.
“However for TV the picture is different; ad prices hit an all-time low in the second half of 2009 and will gradually recover during 2010. This combined with the positive benefits of the World Cup suggest TV advertising will outperform other traditional media.”
BIA/Kelsey recently forecast that the US television industry will see a 22.4% decline in advertising revenues for 2009, leaving it at a total of $15.6 billion.
It added that the significant drop begins a leveling-off of TV industry revenues, to the mid-$10 billion level – a level not seen since the mid-1990s – through at least 2013.