ZenithOptimedia Boosts Global and U.S. Ad Projections Again, Citing Solid Rebound
Doubles U.S. forecast to 2.2% growth this year
NEW YORK - ZenithOptimedia has upgraded its global advertising spending forecast for 2010 yet again, including a doubling of is U.S. percentage growth projection to 2.2%.
It now expects 4.8% growth for this year to $449.5 billion in global ad spend, up from 3.5% previously and making for the fourth upgrade in a row. It didn't detail dollar spending estimates for the U.S.
The firm argued that "the advertising recovery has continued to surprise on the upside."
Discussing the U.S., it said "most of the large financial, retail and automotive spenders have returned to the market," and political ad spending on local television ahead of the mid-term elections is running 61% ahead of 2008.
Zenith had last increased its ad outlook in July.
For 2011, the company raised its global growth forecast from 4.5% to 4.6%, which would now be slower gain than th growth it predicts for 2010, while it eyes an accelerated gain of 5.4% for 2012 to $495.5 billion.
For the U.S., it expects growth to rise to 2.4% in 2011 and 2.9% in 2012.
Zenith CEO Tim Jones said U.S. TV ad spending has been particularly strong this year, but is likely to slow down from an estimated 2010 gain of more than 7% to about 4% next year. Better trends in Internet, radio and newspapers could make up for that though to push up the total U.S. ad growth rate for 2011, he suggested.