Monday, December 05, 2005

FIFA World Cup will boost 'global adspend' in 2006

Global advertising expenditure is in good health and will show stable growth next year, according to a report by ZenithOptimedia. The survey has predicted that global advertising spend will grow by 4.8% in 2005 in line with Zenith's 5% forecast a year ago. Zenith said the moderate growth reflects a tough comparison with 2004, which was buoyed by the US presidential elections, summer Olympics and Euro 2004.

The figure is expected to increase to 5.9% in 2006, aided by the football World Cup in Germany and mid-term elections in the USA.

The report found a number of ad-growth hotspots around the world, with the US coming out on top as the largest contributor to global advertising growth. The US will account for 41-43% of global advertising between 2004 and 2008. The dynamic ‘BRIIC’ economies of Brazil, Russia, India, Indonesia and China are only 6%-10% of the sector but are all among the top eight growers, and predicted to supply 26% of global ad growth 2004-2008. By comparison, the UK, Germany, France, Italy and Spain, will see their share of the global ad market shrink from 19% to 17% over the same period.

The report singled out the internet as a driver of increased ad spend. Zenith said the internet will take 4.6% of advertising spend this year, rising to 6.4% in 2008. From 2005 to 2008, the internet is expected to create US$ 15.8 billion worth of new ad spend.

Advertising Expenditure Forecasts is published quarterly priced £385. It may be ordered in hard or soft copy from www.zenithoptimedia.com.

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