Ad spend bouncing back26 Jul 2011, Posted by Blog in
Marketers’ confidence continues to bounce back as global ad spend looks set to return to 2008 levels this year, with strong gains in out-of-home advertising helping to drive 4-5% gains in Australia.
The positive outlook comes from ZenithOptimedia, which this month (13 July) revised its 2011 forecast prediction to suggest global ad expenditure will grow by 4.1% in 2011. Ad spend is set to return to US$471 billion, the level it reached in 2008 before the global recession.
In even better news, the media agency forecasts more robust growth in 2012 and 2013, after economic pressures, natural disasters and political disruption caused growth to slow this year.
The Australian advertising market – the world’s eighth biggest – looks set to grow at a rate slightly ahead of the rest of the world, the report said.
“We are still forecasting that Australia will show a 4-5% growth this year, with OOH doing well at +7% and the internet continuing to drive growth at 15.9%,” The report suggested. “We believe this forecast is realistic despite recent market slowdown, resulting from the Queensland floods, the effect of the Japanese tsunami as well as a slight downturn in consumer confidence.
We are already seeing signs that this downward trend will quickly recover, in line with economic forecasts, and stronger forward bookings in TV and press in the coming months support this position.”