Fueled by four major events, total advertising expenditure in eight countries is expected to top $259 million through 2004.
This summer is expected to be hot for the advertising industry as media agency ZenithOptimedia predicts a strong global recovery. The Internet is expected to benefit more than most other media.
Spurred by the Olympic Games, European Championship football, and elections in Canada and the U.S., the firm forecasts a 3.2 percent swell across eight large ad markets, marking the most significant increase since 2000.
Further analysis of the markets – U.S., Canada, France, Germany, Italy, Spain, the UK, and Japan – which together accounted for three-quarters of global ad expenditures in 2003, revealed that growth would taper off to 2.3 percent a year in 2005 and 2006. Comparatively, the average growth in the 1990s was 2.5 percent, while the ad-strong mid- to late-1990s experienced 5.4 percent growth
Led by the U.S., ZenithOptimedia projects the global ad spend on major media (including newspapers, magazines, television, radio, cinema, outdoor, and Internet) to reach $259.14 million in 2004 and grow to $278.18 million in 2006. The U.S. will account for $155.27 million in 2004, followed by Europe (France, Germany, Italy, Spain, the UK) at $63.29 million; Japan at $34.29 million; and Canada at $6.27 million.
The Internet will play a strong role in the advertising rebound, particularly in the U.S., the UK, and France. ZenithOptimedia supported the findings from PricewaterhouseCoopers and the Interactive Advertising Bureau that paid search would be integral to the recovery for the U.S. The company expects 8 percent growth in Internet ad spending in the U.S. in 2004.
The firm forecasts 5.5 percent growth in total major media ad expenditure for the U.S. in 2004. Tying with the Internet for the highest ad growth rate in the U.S. are cable television and spot television, while newspaper advertising demonstrates the smallest increase at 4 percent.
The Internet fares even better in the U.K., as ZenithOptimedia forecasts a 16.9 percent increase in 2004, with outdoor (8.9 percent) and radio (7.2 percent) as the only other standout forms of media. Forecasts for France put television, radio, and the Internet to be the only media worthy of attention.
This Year's Premier Digital Marketing Event is #CZLSF
ClickZ Live San Francisco (Aug 11-14) brings together the industry's leading practitioners and marketing strategists to deliver 4 days of educational sessions and training workshops. From Data-Driven Marketing to Social, Mobile, Display, Search and Email, this year's comprehensive agenda will help you maximize your marketing efforts and ROI. Register today!
The Marketer's Guide to Customer Loyalty
Customer loyalty is imperative to success, but fostering and maintaining loyalty takes a lot of work. This guide is here to help marketers build, execute, and maintain a successful loyalty initiative.
The Multiplier Effect of Integrating Search & Social Advertising
Latest research reveals 68% higher revenue per conversion for marketers who integrate their search & social advertising. In addition to the research results, this whitepaper also outlines 5 strategies and 15 tactics you can use to better integrate your search and social campaigns.