»
Citing, in part, the slump in the U.S. housing market, ZenithOptimedia has downgraded its 2007 forecast for U.S. advertising expenditures, but it projects a banner year for internet ad spend - and a record year in 2008 for global TV ad spend because of the Olympic Games, reports MarketingCharts.
Some of the major projections from ZenithOptimedia:
Other forecast data issued by ZenithOptimedia:
Television
Despite the many challenges confronting TV - the spread of digital video recorders, migration of viewers from premium mass-audience channels to cheaper specialist channels, and competition from the internet, among others - TV will increase its share of global ad expenditure from 37.9 percent in 2007 to 38.2 percent in 2008, an all-time record, ZenithOptimedia forecast.
Though TV is losing market share in many countries in North America and Western Europe, the faster ad growth of markets elsewhere, which have fewer alternatives to TV, is counteracting the trend, Zenith said.
In 2008 it expects TV’s share of ad expenditure to fall 0.3 percentage points to 32.4 percent in North America, and 0.5 percentage points to 30.4 percent in Western Europe.
It also said it expects the coverage of the Olympics in Beijing to give an extra boost to television in 2008, particularly in China and its neighbors: Zenith forecast television’s share to grow by 0.5 percentage points to 41.3 percent in China, by 0.3 points to 42.5 percent in Asia Pacific, and by 0.3 points to 38.2 percent across the world.
In the absence of the Olympic Games, TV’s share would have declined to 38.1 percent - which is as high as its previous peak, in 2004, Zenith said.
Internet
ZenithOptimedia again revised upward its forecasts for internet advertising: It projects 29.9 percent growth this year (up from 28.6 percent from its forecast three months ago) and 85 percent growth between 2006 and 2009 (up from the previous forecast of 82 percent).
Online video and local search are the new, fast-growing segments, but display, classified and the rest of search are still growing rapidly as well.
Internet advertising is expected to account for 9.5 percent of all expenditure in 2009, fractionally up from the 9.4 percent Zenith forecast three months ago.
Newspapers
Newspapers are suffering the most from the depredations of the internet, which is better at delivering timely news and is an efficient substitute for newspaper classifieds, according to Zenith.
Newspapers’ share of world ad expenditures is expected to fall from 29.0 percent in 2006 to 26.2 percent in 2009.
Outdoor
By contrast, outdoor is healthy; its market share is forecast to increase from 5.6 percent in 2006 to 5.9 percent in 2009, in part because new digital out-of-home displays make it easy for advertisers to book and distribute eye-catching ads on short notice, Zenith said.
Geographies
The continued slump in the U.S. housing market has also led to a sharp drop in property and construction advertising, particularly property classifieds in newspapers; that and the recent credit squeeze have led to Zenith’s downgrading of its 2007 forecast for the U.S. from 3.3 percent growth to 2.5 percent.
The 2007 forecasts for Western Europe, Asia/Pacific and Latin America are largely unchanged.
Central/Eastern Europe and the Middle East - already standout growth regions - have been upgraded again: Central/Eastern Europe is expected to grow 18.3 percent this year (up from the 16.9 percent projected three months ago) and Africa/Middle East/Rest of World is expected to grow 17.2 percent (up from 15.6 percent).
Eight of the ten fastest-growing markets in the world are in Central & Eastern Europe; the other two are in the Middle East.
The Spanish Radio Association says Arbitron still has not addressed its concerns and research questions regarding the PPM and how “Hispanics are recruited and represented, and how the PPM panel is maintained.”
The SRA has been working with Arbitron in…
The Chicago Tribune’s new design will launch on Sept. 29, Tribune Co. chief operating officer Randy Michaels says. No details on the redesign have been released; the paper has already been decreasing its editorial pages to create a more even split…
Teens are not the best demo to target with cell phone advertising, according to a new study from comScore. Though they are cell phone-savvy, most of them - 70 percent - have their phones paid for by parents, which means…
CNN won its second night of coverage of the Democratic National Convention Tuesday. The network averaged 3.41 million viewers in the 8 p.m. to 11 p.m. time slot, despite the fact that Fox drew nearly even for the night.
Fox…
Generation Y is the most self-indulgent, Generation X is the most innovative, and Boomers are the most productive, while the “Silent Generation” and the “Greatest Generation” are the most admired, according to a recent survey by Harris Interactive, writes MarketingCharts.
Conducted for…
To encourage shoppers to buy more back-to-school items, retailers often implement “loss leader” strategies: that is, selling items at a loss or even giving them away in hopes that the reductions will attract shoppers who will then buy other, more…
