Credit Calamity Leads Zenith to Lower Ad Forecast, But Web to Gain

  |  October 7, 2008   |  Comments

Ad spending in Western countries to be hit hardest.

Global media services firm ZenithOptimedia has downgraded its global ad forecast as a result of the "financial shock" now infecting global economies. However, it believes the Internet will steal greater share of the world's total ad spend than previously anticipated as a result of the chaos.

In its global ad spend forecast, issued today, ZenithOptimedia anticipates global ad spending growth of 4.3 percent this year, a big downward revision of from the 6.6 percent growth it predicted in June. It also slashed its 2009 estimates, from 6 percent growth to 4 percent.

But the forecast also states Internet advertising will increase its share of the world ad market from 8.6 percent last year to 13.8 percent in 2010. That's up slightly from the 13.6 percent Zenith predicted the Web would command back in June.

In actual numbers, global Internet ad spend will hit $51.1 billion this year, 61.7 billion in 2009, and $75.8 billion in 2010, according to the report. That's down from ZenithOptimedia's June prediction of $52.2 billion this year, $64.1 billion in 2009, and $78.2 billion in 2010.

"At a time when ad budgets are under pressure, the Internet has the advantage over traditional media that it provides better levels of measurability," the report's authors wrote.

The Internet will steal this additional share from newspapers, magazines, television and radio, Zenith said. However, newspapers will take the worst of it, suffering spending declines in 2008 and 2009. Zenith claims this would be the first measured decline in any medium since 2002.

Publicis-owned ZenithOptimedia's latest forecast most severely punishes Western nations -- in particular Europe and the U.S. -- where the credit crisis has been worst. It said North American ad spending will grow 1.8 percent this year and 0.9 percent next year, compared to an earlier forecast of 3.5 percent and 2.7 percent. Luxury goods, travel and entertainment categories are expected to be hardest hit as consumers limit spending.

ZenithOptimedia does not break out Internet ad spend by region.

ClickZ Live Toronto Twitter Canada MD Kirstine Stewart to Keynote Toronto
ClickZ Live Toronto (May 14-16) is a new event addressing the rapidly changing landscape that digital marketers face. The agenda focuses on customer engagement and attaining maximum ROI through online marketing efforts across paid, owned & earned media. Register now and save!*
*Early Bird Rates expire April 17.

ABOUT THE AUTHOR

Zachary Rodgers

Until March 2012, Zach Rodgers was managing editor of ClickZ's award-winning coverage of news and trends in digital marketing. He reported on the rise of web companies, data markets, ad technologies, and government Internet policy, among other subjects. 

COMMENTSCommenting policy

comments powered by Disqus

ClickZ Today is our #1 newsletter.
Get a daily dose of digital marketing.

COMMENTS

UPCOMING EVENTS

Featured White Papers

ion Interactive Marketing Apps for Landing Pages White Paper

Marketing Apps for Landing Pages White Paper
Marketing apps can elevate a formulaic landing page into a highly interactive user experience. Learn how to turn your static content into exciting marketing apps.

eMarketer: Redefining Mobile-Only Users: Millions Selectively Avoid the Desktop

Redefining 'Mobile-Only' Users: Millions Selectively Avoid the Desktop
A new breed of selective mobile-only consumers has emerged. What are the demos of these users and how and where can marketers reach them?

Jobs

    • Contact Center Professional
      Contact Center Professional (TCC: The Contact Center) - Hunt ValleyLooking to join a workforce that prides themselves on being routine and keeping...
    • Recruitment and Team Building Ambassador
      Recruitment and Team Building Ambassador (Agora Inc.) - BaltimoreAgora, www.agora-inc.com, continues to expand! In order to meet the needs of our...
    • Design and Publishing Specialist
      Design and Publishing Specialist (Bonner and Partners) - BaltimoreIf you’re a hungry self-starter, creative, organized and have an extreme...