ZenithOptimedia Sees Ad Revs Rising 4.3%, With Network Radio Up, But Slowing Over Three Years
June 19, 2012 at 3:50 AM (PT)
ZENITHOPTIMEDIA's latest forecast expects adspending to grow to 4.3% to $502 billion by the end of 2012, a slight downgrade of the 4.8% growth forecast in MARCH. QUADRENNIAL events such as the OLYMPICS and the Presidential election are expected to add $6.3 billion to global growth.
* Global ad expenditure forecast to grow 4.3% in 2012, slightly down from the 4.8% forecast made in MARCH
* Growth slowed in APRIL and MAY as advertisers became more cautious about the world economy.
* Growth to pick up during the major sport events from JUNE to AUGUST, and in the run up to NOVEMBER elections in the U.S.
* Quadrennial events to add $6.3 billion to global growth this year.
* Ten developing markets to deliver half of global adspend growth between 2011 and 2014.
* Developing markets to increase their share of the global ad market from 32.8% to 36.7% over the next three years.
* Internet’s share of expenditure to rise from 16.0% in 2011 to 21.5% in 2014, exceeding 30% in six markets.
Specifically for radio, ZENITHOPTIMEDIA wrote, "Looking ahead, we expect to see slight increases in network radio of 3.0%, 2.0% and 1.0% in 2012, 2013 and 2014, respectively, with a resurgence in the retail field. Radio continues to be the choice medium of retailers, seasonal products and automotive, providing heavy frequency and drive to retail messages. SPRING and SUMMER bring key sporting events, which generate strong listener interest in baseball, college football and NFL."