ZenithOptimedia lifts ad forecast on U.S., Europe

* 2010 ad growth forecast raised to 3.5 pct from 2.2 pct

* Healthy growth expected in North America and W. Europe

* Internet mobile and social media help drive digital higher

PARIS, July 19 (BestGrowthStock) – Leading media buyer
ZenithOptimedia raised its 2010 global advertising growth
forecast for the third time following a faster-than-expected
recovery in the United States and Western Europe.

The agency, which is part of France’s Publicis (PUBP.PA: ),
now sees the market growing 3.5 percent, more than the 2.2
percent it predicted in April, with all regions expected to show
at least some growth.

“Most of the upgrade is in North America and in Western
Europe (…) but these regions are still growing much more
slowly than most developing markets”, ZenithOptimedia said in a
statement.

Developing markets are expected to drive most of the growth
in global ad expenditure over the next few years, it added.

Developed markets would grow by 2.4 percent in 2011 and 2.9
percent in 2012, while developing markets were expected to grow
by 9.1 percent and 9.8 percent respectively, propelled by the
Asia-Pacific and Latin America regions.

ZenithOptimedia also raised its 2011 global ad spending
forecast to 4.5 percent from 4.1 percent and confirmed its 5.3
percent growth expectation for 2012, up from a 2010 total of
$448 billion and after a 10.3 percent drop in 2009.

“The healty third year after the downturn repeats the
pattern of the last two recessions, though with lower growth
this time,” the agency said.

ZenithOptimedia now expects 2.2 percent growth in Western
Europe this year despite concerns over euro zone debt, up from
0.4 percent before. Ad spending should increase gradually in
2011 and 2012, depending on demand as government austerity
measures kick in later this year.
The starkest contrast comes in North America, where the
agency now forecast 1.3 percent growth in 2010 instead of a 1.5
percent decline, thanks to a strong recovery in consumer
confidence and spending.

Television did relatively well in the downturn, when
consumers tend to spend more time at home, and as new
technologies such as hard-drive recorders encouraged them to
watch even more TV.

Much more dominant in developing markets, TV is expected to
attract 40.8 percent of the global ad market in 2012, up from
39.2 percent in 2009.

Internet ad spending, the biggest medium after TV and
newspapers, should increase its share to 17.1 percent in 2012
from 12.7 percent in 2009, helped by very rapid growth in
Internet mobile and social media, the agency said.
(Reporting by Cyril Altmeyer; Editing by Michael Shields)

ZenithOptimedia lifts ad forecast on U.S., Europe