Forecast: Advertisers Continue Shift Online
July 1, 2008 at 7:00 AM (PT)
The same forces that will drive down ad spending among NORTH AMERICAN and EUROPEAN marketers in the coming years will also spur an uptick in global ad spending online, according to a revised ad forecast released yesterday by ZENITHOPTIMEDIA. CLICKZ.COM reports the media agency released the revised ad forecast after concluding that the credit crisis would likely stunt ad spending in sectors beyond those most commonly affected, such as housing and automobile sales. The new forecast lowers the projected NORTH AMERICAN growth for all ad spending in 2008 from 3.7% to 3.5%.
"The credit crunch continues to worry investors, consumers and advertisers, so we have downgraded our forecasts for ad expenditure growth in 2008," reads the forecast. "However, we have upgraded our forecasts for both regions in 2009 and 2010 in the light of stronger than expected growth in Internet advertising." The forecast also cites high commodity and energy prices as barriers to growth.
"Faced with an uncertain economic future, advertisers are shifting even more of their budgets online, where the returns on their investment are obvious, and easy to quantify and fine-tune," reads the report.