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Ads get a big kick

Spending to jump for Web, Third World

Summer’s World Cup soccer tournament in Germany will boost global ad spending, but it is the developing world and the Internet that will see the biggest increases in ad expenditure in the coming years.

This is according to a survey by international media services group ZenithOptimedia, which predicts global ad growth will increase from 4.9% in 2005 to 6% in 2006, stimulated by the World Cup.

In the U.S., growth in major media — newspapers, TV, radio, cinema, outdoor advertising and Internet — is expected to grow by 5.2% this year, compared with 2.9% in 2005.

Globally, ZenithOptimedia forecasts next year’s ad growth will slow slightly — to 5.6% — and fall back to 5.3% in 2008.

However, this will outpace global gross domestic product growth.

“This would be the first period of consistent outperformance since the late 1990s and suggests that the advertising cycle has emerged from the trough it entered in 2001,” says ZenithOptimedia.

Between 2005 and 2008, six of the 10 largest contributors to advertising growth will be emerging markets: Brazil, China, Indonesia, Mexico, Poland and Russia.

ZenithOptimedia forecasts China, now the world’s seventh largest ad market, will be the fifth largest by 2008, growing by 66% between 2005 and 2008, overtaking Italy in 2006 and France in 2008.

As for the Internet as an advertising medium, the media outfit has once again revised its forecast northwards and predicts the Web will attract 6.5% of all advertising by 2008, up from 4.5% last year.

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