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.
August 10-12: Revolutionize your digital marketing campaigns at ClickZ Live San Francisco! Educating marketers for over 15 years, our action-packed, educationally-focused agenda covers every aspect of digital marketing. Early Bird rates available through Friday, July 17 - save up to $300! Register today.
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.
US Consumer Device Preference Report
Traditionally desktops have shown to convert better than mobile devices however, 2015 might be a tipping point for mobile conversions! Download this report to find why mobile users are more important then ever.
E-Commerce Customer Lifecycle
Have you ever wondered what factors influence online spending or why shoppers abandon their cart? This data-rich infogram offers actionable insight into creating a more seamless online shopping experience across the multiple devices consumers are using.