World Ad spending to decline by 2%: Zenith Study

ZenithOptimedia has reduced its forecast for ad-spend growth in 2009 from 4% to 0.2% as the fallout from the financial crisis has spread throughout the real economies of the developed world.However among the big emerging ‘BRIC’ markets Zenith forecast continued growth in 2009, from 5% for Russia, through 9% in China and 13% in India, to 30% in Brazil.
As reported by Livemint

Internet advertising continues to grow rapidly as advertisers turn to it for its innovation and accountability, which is particularly important in a recession when every line of a budget must be justified.Zenith Optimedia still expect internet advertising to grow by 18% in 2009, including 18% growth in North America and 12% in western Europe. They forecast the internet to take a 15.6% share of global ad expenditure in 2011, 5.2 percentage points ahead of magazines and 5.6 points behind newspapers, having narrowed the gap from 15.1 points in 2008.The other media they expect to undergo substantial growth in 2009 are cinema and outdoor.

Television is also doing relatively well in the downturn. As happened in the previous two downturns (in 1991-1992 and 2001-2002) advertisers will continue to shift their expenditure from secondary media to television, being familiar with its power to build brands. Like cinema admissions, television viewing tends to rise in recessions because it offers escapism, and at a much lower price per hour to the consumer.

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