Internet Ad Spending Increase Stands Alone in 2009 Forecast

According to a new release and ad spending forecast by ZenithOptimedia, current ad expenditure forecasts predict a steeper decline in North America and Western Europe, with all regions joining in the general decline. The report forecasts global ad expenditure to shrink by 6.9% over the course of 2009.

Entering Q2, 2009 says the report, there is limited long-term visibility in the market as most advertisers wait until the last moment to confirm their spending commitments. Many are treating advertising as a discretionary expense, and one they find convenient to cut. Unprecedented economic problems and events affecting the predicted 6.9% decline in global ad expenditure in 2009 include:

• Lack of quadrennial events (Olympics, elections) creates tough year-on-year comparisons for markets like the US
• Poor corporate confidence means very limited visibility in the market
• Consumers are putting off big purchases and shifting consumption from premium to value products, opening opportunities for advertisers with value to offer
• Consumers are spending more time at home, consuming more media, particularly television and the internet
• Search is driving internet growth as consumers use it to find bargains

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