Originally published on Marketingmag.ca
ZenithOptimedia has slightly downgraded its global advertising expenditure forecasts for 2012, calling for growth of 4.3% to US$502 billion–down from the original forecast of 4.8% growth. The media company's forecasts for 2013 and 2014 remain unchanged at 5.3% and 6.1%, respectively.
The report also showed the rapid emergence of the so-called BRIC nations in the global advertising market. China, for example, was the world's 10th largest advertiser in 2001 with an ad spend of US$6.6 billion, but is projected to the world's third-largest advertiser behind only the U.S. and Japan by 2014, with an annual spend of US$48.7 billion.
Zenith is calling for Canadian ad spending to increase 3.9% to US$11.4 billion in 2012. Low interest rates continue to fuel both consumer and business spending, said Zenith.
After a "slightly better than expected" 2011–fueled primarily by a stronger performance than expected by TV–Zenith is projecting slower ad revenue growth in 2012, reflecting uncertainty about short-term economic prospects.
Conventional television finished the 2010-11 broadcast year up 1.8% over a "very strong" previous year that included the Vancouver Olympics. However, Zenith said that was followed by "slowing demand" for TV in the fall and continued softness through the spring.
Read the complete story: Canadian Advertising to Grow 3.9% in 2012: ZenithOptimedia