Zenith trims global ad forecast
- Added:
- Oct 08, 2008
Zenith Optimedia has downgraded its ad expenditure forecast for 2008 for a third time this year, with the Internet continuing to prop up the growth of the industry.
The agency now forecasts worldwide ad spending will rise 4% this year, down from the nearly 7% gain it projected in June this year. Zenith also reduced its forecast for 2009 to 4% from 6%.
The agency attributed this slowing in growth to the "financial shock caused by the bank failures during the latest phase of the crisis in financial markets, which has spread uncertainty and undermined confidence in the wider economy."
Online’s share of the global ad market is expected to increase, from 8.6% in 2007 to 13.8% in 2010, according to the new forecast, taking share from traditional media which will take the hardest hit from current economic pressures.
Global internet ad spend will hit $51.1bn this year, 61.7bn in 2009, and $75.8bn in 2010, according to the report.
In the US, the company predicted an even slower growth, with 2008 ad spend projected to growth just 1.6%, compared with the 3.4% it foresaw in June. Next year, growth will be less than 1%, versus the 2.6% it believed would occur in June.
The agency said: "Fears for the future will cause consumers to cut their spending, while companies carefully inspect their budgets to find cost savings”.