ZenithOptimedia downgrades ad spend growth
ZenithOptimedia is forecasting global advertising spend to grow 4.3% in 2012 to total $502 billion for the year, a downgrade on March’s 4.8% forecast.
But the media agency points out that the Euro 2012 Football Championship, the Olympics and the US elections will provide the regular ‘quadrennial effect’.
“This year we expect these events to add US$6.3 billion to the global ad market, almost all of it concentrated in the five months from early June to early November. We therefore expect ad spend growth to pick up from June onwards,” says ZenithOptimedia.
“The Internet is by far the fastest growing medium – we forecast it to grow on average by 16% a year between 2011 and 2014 Display is the fastest-growing sub-category, with 20% annual growth, thanks to the rapid rise of social media and online video advertising. Display advertising is now growing substantially faster than paid search (which we forecast will grow by 15% a year to 2014) and classified (8% a year). Display advertising accounted for 36% of Internet advertising in 2011 – by 2014 we expect this proportion to increase to 40%.”