Zenith predicts solid growth for ad industry

Forecasts for growth in European advertising are also set to overtake their transatlantic counterparts in 2005, with a 4.4% increase on 2004 compared to 4.2% in the US.

The report – produced by media agency ZenithOptimedia – also revealed projected ad spend figures for 2006.

Despite an increase from 2006 to 2005 of 11.2% the figure is expected to indicate a slowing down of the boom years for the Africa, Middle East and Rest of the World sector from 22.5% in 2002.

During the same period in Europe and North America, growth is expected to be at the 5% level, with Asia-Pacific (5.5%) and Latin America (6.7%) performing marginally better.

Global share of advertising, in terms of sectors, is forecast to show a slight dip for press over the next two years to 29.6% and 13.4% for newspapers and magazines respectively.

Television ad spend is expected to remain steady at 37.7% in 2006, while radio will have decreased to 8.7% in the same period.

Outdoor will fall by just 0.1% to 5.2% over the next two years, with cinema advertising forecasted to remain at 0.4% during the same period.

The clear winner is expected to be internet advertising, which has seen an increase to a 3.5% overall share since 2002 and is forecasted to add another 0.5% to its share by 2006.

This article was first published on Media Week