Media agency ZenithOptimedia projects global advertising expenditure to increase by 5.2% this year, a slight upward revision from its earlier prediction of 4.7%.
In its latest forecasts, Zenith claims that Brazil, Russia and China will supply 27% of world-wide advertising growth in 2005, while the USA will remain the largest contributor to global adspend, providing 30% of this year’s ad cash expansion.
The new figures reflect consumer price inflation picking up, and while Zenith is more optimistic than its mid summer predictions (see Global Adspend Growth Forecast In Line With GDP), its forecasts are not as strong as the 5.4% estimate made at Easter (see Advertising Market Forecast To Remain Solid).
According to Zenith, internet revenue is predicted to increase at three times the rate of all other media, with the agency revising its latest forecast upwards by 0.3% points to 5% for 2005, compared to 4.7%.
Radio and newspaper revenue also enjoyed an upward turn, at 8.2% and 29.8%, up from 8.1% and 29.4% respectively.
These revisions follow those made by Carat last month, with the agency predicting global advertising expenditure to reach 5.2% in 2005, up from the previously expected 5%.
This summer, Universal McCann’s Bob Coen predicted total US adspend for 2005 to be up 5.7% year on year, reaching $278.7 billion, down from his previous estimate of 6.4% (see McCann Revises 2005 Adspend Estimates).
The Advertising Association (AA) forecast adspend in the UK to rise by almost 5% this year and by nearly 4% in 2006, revising their previous estimates downwards from 4.3% (see UK Adspend Forecast To Rise 5% In 2005).
| |
| Advertising Expenditure By Major Media (US $million, current prices) |
| |
2003 |
2004 |
2005 |
2006 |
2007 |
| North America |
158,616 |
168,197 |
174,320 |
184,078 |
192,397 |
| Europe |
98,379 |
104,344 |
107,592 |
112,294 |
117,401 |
| Asia/Pacific |
74,043 |
80,116 |
84,554 |
89,996 |
97,395 |
| Latin America |
13,703 |
15,467 |
18,455 |
20,085 |
22,135 |
| Africa/ Middle East |
14,520 |
18,223 |
21,335 |
24,858 |
28,084 |
| World |
359,261 |
386,347 |
406,257 |
431,311 |
457,412 |
| Source: ZenithOptimedia |
|
|
|
|
| |
| Year-On-Year Percentage Change |
|
| Major Media (newspapers, magazines, television, radio, cinema, outdoor, internet) |
| |
2003 v 02 |
2004 v 03 |
2005 v 04 |
2006 v 05 |
2007 v 06 |
|
| North America |
1.9 |
6 |
3.6 |
5.6 |
4.5 |
|
| of which USA |
1.7 |
6 |
3.6 |
5.7 |
4.5 |
|
| Europe |
1.4 |
6.1 |
3.1 |
4.4 |
4.5 |
|
| Asia/Pacific |
5.4 |
8.2 |
5.5 |
6.4 |
8.2 |
|
| Latin America |
3.5 |
12.9 |
19.3 |
8.8 |
10.2 |
|
| Africa/ Middle East |
19.1 |
25.5 |
17.1 |
16.5 |
13 |
|
| World |
3.1 |
7.5 |
5.2 |
6.2 |
6.1 |
|
| |
| Global Shares Of Display Advertising Revenue By Medium (%) |
| |
2003 |
2004 |
2005 |
2006 |
2007 |
| Newspapers |
30.9 |
30.5 |
30.3 |
30.1 |
29.8 |
| Magazines |
13.9 |
13.5 |
13.4 |
13.3 |
13.4 |
| TV |
36.9 |
37.4 |
37.1 |
37.2 |
37.2 |
| Radio |
8.8 |
8.6 |
8.5 |
8.3 |
8.1 |
| Cinema |
0.4 |
0.4 |
0.4 |
0.4 |
0.4 |
| Outdoor |
5.4 |
5.4 |
5.4 |
5.4 |
5.5 |
| Internet |
3.2 |
3.7 |
4.3 |
4.7 |
5 |
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