Forecast: Ad outlook is improved

A revised forecast from ZenithOptimedia is a bit more buoyant that forecasts released earlier this year. According to their revised research, advertising will continue to see steady increases, especially in the US, as companies gear up for the Olympics, the 2008 elections and in Europe, Euro 2008.

by Kristina Knight

Globally, the forecast predicts a 6.7% increase in ad spending while in the US a 4.1% increase in spending is expected.

"We see these overriding trends being masked by the fact that we're coming up on a quadrennial year," said Tim Jones, president-CEO of ZenithOptimedia North America (via MediaDailyNews). "Thank god for those effects. If you took out the quadrennial issues, then the growth would remain flat."

In the US, the Olympics are expected to account for about $3 billion in incremental advertising spending. The 2008 elections could bring in as much as $2 billion, according to the forecast. In Europe, the Euro 2008 competition could bring in another $1 billion.

Online advertising spending is expected to account for much of the increases in spending globally but in emerging countries like China, India and Russia, a generalized advertising increase is expected. By 2009, the Internet is forecast to be the fourth-largest advertising platform (9.4% share), overtaking radio. The Internet's share will increase of more than 11% by 2010, according to the forecast, and will overtake magazine advertising.