Cold front ahead for TV ad spend
Glacial growth forecast through 2009 despite OlympicsGlobal television ad spending looks set to struggle in 2008 and 2009 but should begin to rebound in 2010, according to new research published Monday by Screen Digest.
Television advertising spending is forecast to increase by 1.9% in Europe and 1.5% in the U.S. in 2008, in both cases growing slower than the economy, which is predicted to grow annually by 3.6% in Europe and 3.7% in the U.S. over the two-year period.
Though events including the Olympic Games and next year's European soccer championships will provide a temporary boost to the sector, they will not compensate for the overall downturn, the research concludes.
By 2011-12, as the European and U.S. economies begin to pick up, overall advertising rates will grow by 5% in Europe and 6% in the U.S., but the bulk of that growth will be driven by online advertising that will continue to sap more traditional television budgets, the research forecasts.
Digital and multichannel revenues also are expected to increase. Online advertising is predicted to grow an average of 17% each year from 2008 to 2012, while digital advertising is expected to experience growth rates of 20% per year.
"Online will continue to grow apace, buoyed by a strong search advertising market, and digital television channels will be taking up a bigger share of ad budgets by 2012 at the expense of traditional broadcasters," report author Vincent Letang said.