Global advertisement spending has exceeded experts’ predictions in the first half of the year.
While key advertising forecaster Zenith Optimedia expected a 2.2% growth for the entire year in April, it just revised its forecast and now sees a rise of 3.5% in global ad spending. The total amount of ad spending is expected to reach $447.7 billion by the end of 2010.
The two key markets that have pushed up the numbers were North America and Western Europe, news agency AP said citing Zenith analysts. The debt crisis in Europe and the US unemployment has not put much of a dent in ad spending, as consumer confidence and spending have recovered somewhat. However, Greece and Spain, due to the recent economic turmoil the two countries are currently experiencing, will spend less on advertisement: forecasts see 13.9% and 0.7% declines, respectively.
Zenith sees the most potential in internet ads, predicting a 13% increase this year.
The agency remains optimistic in the longer run, too: it projects some $492.6 billion in ad spending for 2012. However, this would still below the average rate of the past 25 years, Zenith noted. “It reflects the severity of the latest downturn,” it added. (BBJ)