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Global ad market to grow in 2012 - forecast claims

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By The Drum Team, Editorial

December 5, 2011 | 1 min read

The global advertising market will grow by 4.7 percent in 2012 according to the latest forecasts from media agency ZenithOptimedia

Fuelling this growth will be key events such as the London Olympics and the US presidential election.

In October Zenith forecasted growth of 5.3 percent for 2012 and 3.6 percent for 2011. It has now revised those expectations and is forecasting 3.5 percent growth for this year.

The reduction has been blamed on Europe's financial woes, but Zenith still expects spending to grow because companies have cash available to spend on growing their market share - something they were lacking during the 2008 downturn.

Zenith said: "The global ad market is therefore remarkably strong at a time when the eurozone threatens to fall back into recession and drag down the growth of its trading partners.

"In general, advertisers have built up large cash reserves and -- thanks to exceptionally loose monetary policy in the developed world -- are earning very little interest on this cash."

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