UK Adspend Forecast Downgraded By ZenithOptimedia
ZenithOptimedia has downgraded its UK ad forecast for this year and 2009, with significant growth expected to return in 2010.
TV adspend is expected to fall 8.3% this year versus 2007, while newspaper adspend is expected to fall 7.2% this year versus 2007.
Online adspend is expected to increase, with year on year growth of 21%, 20.3% and 23.7% over the coming three years.
Zenith forecasts that newspaper adspend will fall by 4.2% year on year in 2009, while radio is predicted to fall 6.4% this year.
Speaking to Media Week about the turbulent times ahead, Sir Martin Sorrell, chief executive of WPP Group, said: “As for 2009, we’ve been saying for a couple of years now it will be a difficult year. It is certain to have an impact on traditional media more than online (but with online now commanding 10% of ad spend and growing, it will be felt there too).
“Of course, it’s easy to say, but harder to do – the Pavlovian reaction is to cut, but the industry can learn from someone such as Rupert Murdoch, who historically has never done that. You’ll see him investing in editorial and products.”
Globally, Zenith forecasts that adspend will grow 4.3% in 2008, down from its previous forecast of 6.6% from June this year (see ZenithOptimedia Lowers Global Adspend Forecast).
In July, Magna forecast that worldwide advertising spending will rise 4.4% this year, with the UK expected to see 3% growth (see Global Adspend To Grow 4.4% This Year).