World AdSpend Strength in Developing Countries
In its first advertising expenditure forecasts of 2008, ZenithOptimedia downgraded its combined growth forecasts for North America and Western Europe this year from 4.4% to 3.8%, as consumer and business confidence is negatively impacted by current economic conditions. However, says the report, growth continues to strengthen elsewhere, and Zenith increased its 2008 forecasts for the rest of the world from 10.9% to 11.1%.
Other forecast highlights include:
Major Media(Newspapers, magazines, TV, radio, cinema, outdoor, Internet)Ad Spending (2006 U.S. $ Billion) | |||
| 2008 | 2009 | 2010 |
North America | $193.6 | $197.9 | $202.6 |
Western Europe | 112.6 | 117.3 | 122.3 |
Asia Pacific | 107.0 | 113.9 | 122.5 |
Central & Eastern Europe | 34.0 | 39.5 | 45.1 |
Latin America | 29.0 | 31.9 | 34.5 |
Africa/M.East/ROW | 18.7 | 22.0 | 26.1 |
World Total | 494.9 | 522.6 | 553.1 |
Source: ZenithOptimedia, March 2008 |
Combined (North America, Western Europe, and the rest of the world) results point to a slight downgrade of global growth from 6.7% in the previous forecast to 6.5% - but still well above the 5.0% average rate at which the global ad market has grown for the last 10 years. Zenith predicts continued above-trend growth thanks to dynamism in Asia Pacific, Central & Eastern Europe, Latin America and the Middle East.
Major Media (Newspapers, magazines, TV, radio, cinema, outdoor, Internet) Year-on-Year % Change | |||
| 2008 v '07 | 2009 v '08 | 2010 v '09 |
North America | 3.7% | 2.2% | 2.4% |
USA only | 3.7 | 2.1 | 2.2 |
Western Europe | 3.9 | 4.2 | 4.3 |
Asia Pacific | 8.2 | 6.5 | 7.5 |
Central & Eastern Europe | 18.3 | 16.2 | 14.2 |
Latin America | 13.3 | 10.0 | 8.1 |
Africa/M.East/ROW | 12.4 | 17.4 | 18.6 |
World Total | 6.5 | 5.6 | 5.8 |
Source: ZenithOptimedia, March 2008 |
Developing markets will contribute significantly to growth in global ad expenditure:
Top Ten Contributors to Global AdSpend Growth Between 2007 and 2010 | ||
Country | Growth (US$ Million) | Growth (%) |
USA | $14.8 | 8.3% |
China | 9.2 | 61.5 |
Russia | 8.3 | 92.1 |
UK | 4.5 | 19.5 |
Brazil | 4.5 | 46.6 |
India | 3.2 | 52.2 |
Japan | 2.4 | 5.7 |
South Korea | 2.1 | 21.6 |
South Africa | 2.1 | 45.9 |
Pan Arab | 2.0 | 54.2 |
Source: ZenithOptimedia, March 2008 |
Other report highlights:
Global Advertising Expenditure by Medium(2006 US$ millions and % share of medium) | ||||||
Medium | 2008 ($) | 2008 (share) | 2009 ($) | 2009 (share) | 2010 ($) | 2010 (share) |
Newspapers | $126.3 | 25.9% | $127.6 | 24.8% | $130.7 | 23.9% |
Magazine | 57.2 | 11.7 | 59.3 | 11.5 | 61.6 | 11.3 |
TV | 184.2 | 37.8 | 193.7 | 37.6 | 204.6 | 37.6 |
Radio | 38.6 | 7.9 | 39.9 | 7.8 | 41.3 | 7.6 |
Cinema | 2.2 | 0.5 | 2.4 | 0.5 | 2.7 | 0.5 |
Outdoor | 31.7 | 6.5 | 34.5 | 6.7 | 37.3 | 6.9 |
Internet | 47.5 | 9.7 | 57.1 | 11.1 | 66.9 | 12.3 |
Total | 487.7 |
| 514.5 |
| 544.4 |
|
Source: ZenithOptimedia, March 2008 |
Note: Totals differ from AdSpend table because of difference in itemized categories by country, and fit by medium.
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