The U.S. and European advertising markets will not recover until 2011, but the worst of the ad famine may soon be over, according to the latest global survey by media agency ZenithOptimedia.
It predicts the North American market will shrink again next year, by 2.4%, while advertising in Western Europe will “stagnate” until 2011. Meanwhile, the rest of the world will return to growth next year.
“For all sectors, the shape of the rest of this year is becoming clearer,” ZenithOptimedia said. “The second quarter was not quite as tough as the first quarter. We have held our expectations for the rest of the year steady, as signs emerge that the downturn is approaching its nadir.”
The global advertising market is expected to decline 8.5% this year. Previously ZenithOptimedia had forecast it would contract by 6.9%.
“Faced with extreme uncertainty, advertisers in most sectors planned for the worst and cut their costs in anticipation of steep drops in revenue,” ZenithOptimedia said.
However, ZenithOptimedia said of the 79 markets highlighted in the report, 25 are still growing.
China is expected to grow 5.4% this year to overtake the U.K. as the world’s fourth biggest ad market, while India is forecast to expand by 7.7%.
In 2011, only Finland, Greece, the Netherlands, Norway and Taiwan will not show any ad growth, the survey predicted.
Overall, the global ad market is expected to increase by 4.3% in 2011.