LONDON — The global ad market will grow by 6.7% next year, compared with 5.3% this year, media agency ZenithOptimedia is predicting.
The expansion in ad revenue, which will climb from $446 billion in 2007 to $475 billion in 2008, flies in the face of gloomy economic prospects in Western markets. This is, in part, because developing markets such as China and Russia have taken over as the biggest engines of ad spend growth.
While the housing downturn and credit squeeze will hit property and finance advertising in the U.S., events like the U.S. presidential and congressional elections, the Olympics and the Euro 2008 soccer contest will all help boost the ad market.
By 2010, China is forecast to be the fourth largest global ad market and Russia the sixth.
Between 2006 and 2010, the Internet will nearly double its share of global ad spend at the expense of most other media.
Internet advertising will be worth $36 billion this year, $5 billion more than ZenithOptimedia predicted a year ago.
Internet advertising is expected to overtake radio advertising next year and pass magazine advertising in 2010, with 11.5% of total ad spend.
TV’s share of the market is forecast to remain relatively static — from 37.8% in 2006 to 37.5% in 2010.