MAM

Asia key global ad growth driver; internet spends skyrocket: ZenithOptimedia

MUMBAI: ZenithOptimedia's latest edition of Advertising Expenditure Forecasts revealed that although the ?BRIIC? economies of Brazil, Russia, India, Indonesia and China represent around eight per cent of global advertising, they supplied 30 per cent of growth in 2005. The research revealed that in 2008, these countries would collectively contribute to a growth of 33 per cent.

According to the findings of the study, advertising growth is still meeting or beating economic growth in most countries. Also, television's share of ad budgets appears to be peaking worldwide, and may well already have peaked in at least two of the most mature television markets - the US and the UK.

The forecast for Internet growth and outdoor have also been published and according to the research, the latter appears to be acting as a substitute for television.

 

ZenithOptimedia's Advertising Expenditure Forecasts said that traditional ad expenditure continues tracking or exceeding world economy. It predicted that Internet advertising will be $18 billion this year. "If it were a country it would rank top five in size and growth - like a Western Europe giant growing at an emerging Asia rate," the report said.

Also, there seems to be a strong demand for market research in the world, according to the report.

"We expect global advertising expenditure to grow 4.8 per cent in 2005 in line with our 5.0 per cent prediction a year ago. 2006 is a touch firmer at 5.9 per cent (we predicted 5.8 per cent a year ago) and 2007 is down slightly at 5.7 per cent (5.8 per cent a year ago). Our opening forecast for 2008 is 6.0 per cent," the report said.

 

 

ZenithOptimedia predicted an advertising growth of major media including newspapers, magazines, television, radio, cinema, outdoor and Internet of 4.8 per cent in 2005, exactly in line with the long-term trend rate of ad revenue growth, which itself is the same as the long-term trend rate of growth in the world economy.

Advertising expenditure

Major media (newspapers, magazines, television, radio, cinema, outdoor, Internet)

US$ million, current prices. Currency conversion at 2004 average rates.

Source: ZenithOptimedia

Year on Year change

Major media (newspapers, magazines, television, radio, cinema, outdoor, Internet)

Source: ZenithOptimedia

The report said that the moderate rate of ad growth this year reflected a predictably tough comparison versus 2004, which was a quadrennial year (presidential elections, summer Olympics, European football). 2006 is a mild pickup to an above-trend 5.9 per cent, assisted by mid-term elections, the soccer World Cup and those tough comparatives washing through.

 

The ad-growth hotspots

According to the report, the USA is the largest contributor to global advertising growth, providing 33 per cent of the ad dollars added between 2004 and 2008 while accounting for 41 - 43 per cent of global advertising.

The dynamic ?BRIIC? economies of Brazil, Russia, India, Indonesia and China are only 6 - 10 per cent of the sector but are all among the top eight growers, and predicted to supply 26 per cent of global ad growth 2004-2008. By contrast, the five large European markets (UK, Germany, France, Italy, and Spain) are making a predicted contribution of 11 per cent, and their combined share of the global ad market consequently shrinks from 19 per cent to 17 per cent over the same period.

Internet

One medium ZenithOptimedia sees as an increasing factor fueling the worldwide advertising marketplace is the Internet. The Internet will take 4.6 per cent of advertising spend this year, rising to 6.4 per cent forecast in 2008. From 2005 to 2008 inclusive, ZenithOptimedia predicted it will create $15.8 billion new ad dollars ? 17 per cent of total global ad growth over this four-year period.

The report added, "This may be conservative: we often revise Internet revenues upwards. In Sweden, an online leader, the Internet already accounts for nine per cent of advertising and is forecast to rise to 12 per cent. In time we may find Internet assumes such a double-digit share worldwide, comparable to the share magazines take today."

Adspend by medium 2004-2008

* The totals here are lower than the total on the previous page, since that table includes total adspend figures for a few countries for which spend is not itemised by medium

Strong demand for market research

ZenithOptimedia estimated the expenditure on other forms of marketing communications and services at $414 billion in 2005, slightly ahead of the display ad total.

This estimate comprises direct mail, directories (like Yellow Pages), price and other promotions, PR, market research, outbound telemarketing and miscellaneous specialist media. As a whole, this group is growing at about the same rate as display advertising: direct mail and outbound telemarketing in particular are holding growth back.

According to the agency, market research is the star and although it accounts for only $23 billion or six per cent of marketing communications, services expenditure, ZenithOptimedia estimated it will grow 11 per cent this year and at a similar annual rate 2006-2008 as advertisers seek to improve return on marketing investment and offset the risks inherent to media fragmentation.

Latest Reads

http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/11/16/rs.jpg?itok=npu6o4K2
‘Beautiful by Nature’: JOYquestions Stereotypes in a Brand New Campaign with Mouni Roy

People are conditioned into following certain pre-defined beauty standards of how a woman should look, behave and carry herself around. Physical appearance has always been the yardstick to measure a woman’s beauty

MAM Media and Advertising Ad Campaigns
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/11/16/stdoud.jpg?itok=Ssn_LDuQ
India gets their first-ever international standard Motion Capture Lab

An institution in the entertainment & storytelling sector, Famous Studios once again proves its leadership position.

MAM Marketing MAM
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/11/15/hdfc.jpg?itok=3YRjH9QH
HDFC Life chooses Music to connect with young millennials

HDFC Life Insurance Company, one of India’s largest private life insurers, launched the second edition of its successful campaign #YoungandResponsible on 15 November 2018.

MAM Marketing MAM
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/11/15/droom.jpg?itok=bhQd3GhR
Droom ramps up its marketing momentum with the launch of an integrated radio/cinema campaign in major cities across India!

Droom, India’s largest and pioneering online automobile transactional platform, has today announced the rollout of an integrated marketing campaign.

MAM Media and Advertising Ad Campaigns
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/11/15/Untitled-1.jpg?itok=oDiO2ebf
Realme introduces its new visual identity system and logo

Realme, the smartphone brand that specializes in providing high quality products for youth, launched its fully upgraded Brand Visual Identity system and Logo to provide a new visual experience and emotional connection with young consumers.

MAM Marketing MAM
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/11/15/ipsos.jpg?itok=6jYANKvt
Business Entrepreneurialism sees emergence of Social Entrepreneurialism: Ipsos Survey

According to a new survey by Ipsos, a global market research agency, the traditional definition of entrepreneurialism is now undergoing a metamorphosis of sorts and is moving from pure play business entrepreneurialism and is adding a key element of social entrepreneurialism to make a definitive...

MAM Marketing MAM
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/11/15/ooyala.jpg?itok=6PiPuYqv
OOYALA JOINS SRT ALLIANCE

Ooyala today announced that it has joined the SRT Alliance, a collaboration to continuously develop the SRT (Secure Reliable Transport) protocol and technology stack for low-latency video streaming across any network.

MAM Marketing MAM
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/11/15/pro.jpg?itok=rosHl_Ad
Producers Guild of India amends by-laws Makes it mandatory for members to implement 'The Sexual Harassment of Women at Workplace' (Prevention, Prohibition and Redressal) Act 2013 (PoSH)

Mumbai: Producers Guild of India at its Extraordinary General Meeting (EGM) on 14th November, 2018 in Mumbai unanimously passed a resolution to amend its by-laws thereby making  it  mandatory  for  all those  members  who  fall  under  the  purview  of  the  The  Sexual Harassment of Women at...

MAM Marketing MAM
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/11/14/isobar.jpg?itok=f-1TWl1m
Isobar launches Sri Lanka Operations

Isobar, the digital agency from Dentsu Aegis Network, has expanded its operations to Sri Lanka.

MAM Media and Advertising Digital Agencies

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories