ZenithOptimedia Frightens the Children With Forecast of Adspend Declines

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ZenithOptimedia has reduced its ad spend forecast for 2009. In December it said the year would see a 0.2 percent decline, per Adweek, but now it’s calling for a 7 percent decline.

Only the internet will get extra ad dollars, Reuters points out, with spending rising 8.6 percent. ClickZ notes that estimate has come down from an in-hindsight-delusional forecast of a 20.9 percent increase.

TV will also benefit in terms of share:

Television, still the most popular medium with advertisers, will increase its share of advertising budgets to 38.6 percent from 38.1 percent as cash-strapped consumers spend more time at home watching TV and advertisers stick to what they know and trust.

Not everyone is bullish on the web:

UK-based media research firm Screen Digest, however, predicts a 5 percent drop in U.S. online advertising this year, after growth fell to 2.6 percent in the fourth quarter of 2008 from 15 percent in the first nine months.

Tags: Advertisement, Advertiser, ZenithOptimedia, TVs, Tv & Home Theater, Personal Technology, Home Entertainment, Jim Edwards

Jim Edwards, a former managing editor of Adweek, has covered drug marketing at Brandweek for four years, and is a former Knight-Bagehot fellow at Columbia University's business and journalism schools. Follow him on Twitter or send him an email.

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ZenithOptimedia warns of 8.7% slump in UK ad spend

Media Week - 223 days 20 hours 8 minutes ago

LONDON - UK ad spend will be almost 8.7% lower in 2009 from last year, ZenithOptimedia is predicting, with global ad spend forecast to dip 6.9% this year.
Online Media Daily: Revised Forecast Predicts Internet Will Be Only Medium To Grow Ad Dollars This Year

MediaPost - 223 days 14 hours 44 minutes ago

The Internet is the only medium expected to reap advertising increases during 2009, according to the latest edition of ZenithOptimedia Group's quarterly tracking study on the advertising economy. The report, released early this morning, reflects a dramatic downward correction by the Publicis media unit, which now predicts the global ad economy...
Online Advertising To Grow 10% In ‘09

WebProNews - 140 days 14 hours 19 minutes ago

Worldwide online advertising will grow 10 percent this year, accounting for 15.1 percent of global ad spending by 2011, according to a new report from ZenithOptimedia Group. The report said online advertising has performed better than what was forecast three months ago due to its transparency, accountability and flexibility. Online advertising...
ZenithOptimedia revises spend forecast to -9.9%

B&T - 34 days 22 hours 13 minutes ago

ZenithOptimedia has downgraded its global ad spend forecast to -9.9%, while Australia’s spend forecast for 2009 has been marginally revised upwards to -6.3
ZenithOptimedia says global ad spending will increase 0.5% next year

B to B - 35 days 10 hours 1 minute ago

New Yorkand#8212;ZenithOptimedia projects that global ad spending will increase 0.5% next year, down from a July forecast of 1.6% growth

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1

nosamg

04/17/09 | Report as spam

RE: ZenithOptimedia Frightens the Children With Forecast of Adspend Declines

It wasn't that long ago that top marketing exec's would more-or-less brag that a good half of their advertising spend was wasted....and they didn't know which half. There is still a lot of waste in advertising, and unfortunately for those of us in the media business, the pie will get smaller. The current economic situation is a just a catalyst to accelerate the trend.
2

Cathy Taylor

04/17/09 | Report as spam

RE: ZenithOptimedia Frightens the Children With Forecast of Adspend Declines

Would like to see temporary moratorium on ad spending forecasts. Doesn't help anybody, and in this environment, frighteningly self-fulfilling.