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Tag: ZenithOptimedia

  • China to overtake Germany as No. 3 ad economy; global ad spends recovering

    China to overtake Germany as No. 3 ad economy; global ad spends recovering

    MUMBAI: The rise of China as a powerhouse stretches to the advertising world as well. China will overtake Germany to become the third largest advertising economy in the world in 2011, behind the US and Japan.

    While the global advertising market will continue to recover steadily over the next three years, China will outpace this growth to touch $34.24 billion in 2013, a 51 per cent growth over the next three years, according to a forecast by ZenithOptimedia.

    China could soon beat Japan, a country hit by deflation and high public debt which will slow down ad growth to 5 per cent through 2013. The Chinese ad market, which is currently just over half the size of the Japanese market, will be three-quarters that of Japan in 2013, according to Zenith. 

    Meanwhile, Russia will enter the top ten list in 2012, outpacing Australia and Canada to take ninth place, and overtaking Italy to take the No. 8 spot in 2013.

     
    The global ad market is on a rebound. The global ad spends will continue to recover steadily and by 2012 will surpass the 2008 levels, according to two new research studies published today.

    Group M‘s forecast has predicted the $500 billion mark to be achieved “at some point in 2012”. According to the WPP-owned media buying agency network, the Internet will overtake newspapers as the second biggest global advertising medium behind TV. 

    ZenithOptimedia forecasts the overall ad market to grow between 4.6 per cent and 5.2 per cent annually for the next three years. Driven by the rapid growth of online video and social media, Internet advertising will lead the pack at 48 per cent growth. Outdoor advertising will grow by 18 per cent and TV and cinema 19 per cent each. Radio will lag behind with 10 per cent and newspapers and magazines will see a two per cent dip.

    ZenithOptimedia global CEO Steve King said Internet advertising “will grow three times as fast as the rest of the market as a whole” and the “importance of the internet is underrepresented” in the figures. 

    According to Publicis‘s media buying agency network, this growth over the next three years will be sponsored by the developing markets – Asia Pacific will grow by 23 per cent and Latin America by 26 per cent.

    “The key result of this update is the continued rise of developing markets and digital media, and their central role in driving global growth,” elaborated King.

    “Advertisers are investing a lot more in owned and earned media, where their activities do not count as ad expenditure in the traditional sense,” adds King.

  • Fifa World Cup final generates viewership of 313 million: ZenithOptimedia

    Fifa World Cup final generates viewership of 313 million: ZenithOptimedia

    MUMBAI: According to ZenithOptimedia, the Fifa World Cup final between France and Italy on 9 July generated a television viewership of 313 million viewers across 56 countries. The largest audience came from China, where viewership peaked at 71.5 million, followed by Brazil, Germany, Vietnam, Indonesia, France, Russia, the U.K., Japan and Italy.

    As per the study, Germany recorded an average match viewership of 11.8 million. The cumulative audience was 658 million, a 141-per cent increase on the 2002 World Cup. Germany’s 2-0 loss to Italy in the semi-finals was watched live by 29.7 million viewers in the host nation.

    The study revealed that four Asian nations (China, Vietnam, Indonesia and Japan) ranked in the top ten for audience totals. They accounted for 49 per cent of viewing among the top eleven. Japan recorded a 64-per cent fall compared to 2002 audience levels. In China, the cumulative audience fell 58 per cent compared to 2002, when the matches were broadcast in prime time and China had qualified for the World Cup for the first time.

    Viewership in the U.S. peaked at just 9.4 million, but the cumulative audience of 235 million was 48-percent up on 2002 and 55-percent up on 1998. This was largely the result of Univision, whose broadcast of the Argentina versus Mexico match was the most-viewed sports broadcast in the history of U.S. Spanish-language television, with 6.7 million viewers, as per the data.

    In the U.K., the BBC attracted 53 per cent of the cumulative audience, but ITV broadcast the highest-rated match: the 2-2 draw between England and Sweden, which generated an audience of 18.8 million. The BBC’s best audience was 16.3 million for the match between England and Ecuador.

    Largest World Cup television audiences in millions (2006):

    Cumulative audience/Highest audience:

    China 1,820 / 71.5

    Brazil 1,140 / 60.5

    Germany 658 / 29.7

    Vietnam 650 / 29.8

    Indonesia 589 / 23.5

    France 388 / 22.2

    Russia 369 / 12.9

    U.K. 362 / 18.8

    Japan 289 / 42.3

    Italy 278 / 23.9

    ZenithOptimedia’s specialist consultancy agency Sponsorship Intelligence (SI) is the official provider of 2006 Fifa World Cup audiences figures to both Fifa and its TV agency, Infront.

  • Football World Cup to boost adspend growth in 2006: ZenithOptimedia

    MUMBAI: Ad expenditure in 2005 grew 4.9 per cent, which is the average rate at which expenditure has grown for the last decade. However, this year, the football World Cup will arouse intense interest and produce plenty of promotional opportunities. According to a recent study by ZenithOptimedia, the football World Cup will help ad expenditure to grow over a percentage point faster – by 6 per cent – in 2006.
     
     
    The agency expects growth to slow slightly, but however, remain above trend, to 5.6 per cent in 2007 and 5.3 per cent in 2008.
     
     
    The research also found that most of the largest contributors to the advertising growth will be the emerging markets. Another highlight is that internet advertising will overtake outdoor in 2007.

    Advertising expenditure: Major media (newspapers, magazines, television, radio, cinema, outdoor, Internet)
     2004 2005 2006 2007 2008
    North America 168,250 173,271 182,209 189,878 197,369
    Europe 104,567 108,448 113,010 117,726 122,657
    Asia/Pacific 78,802 83,162 88,819 95,420 101,816
    Latin America 15,546 18,021 19,754 21,090 22,244
    Africa/M. East/ROW 18,160 21,206 24,581 28,043 32,190
    World 385,324 404,108 429,373 452,157 476,276
    Source: ZenithOptimedia, US$ million, current prices. Currency conversion at 2004 average rates.
     

    Year-on-year change (%): Major media (newspapers, magazines, television, radio, cinema, outdoor, Internet)
     2004 v 03 2005 v 04 2006 v 05 2007 v 06 2008 v 07
    North America 6.1 3.0 5.2 4.2 3.9
    of which USA 6.0 2.9 5.2 4.2 4.0
    Europe 6.4 3.7 4.2 4.2 4.2
    Asia/Pacific 6.5 5.5 6.8 7.4 6.7
    Latin America 13.4 15.9 9.6 6.8 5.5
    Africa/M. East/ROW 27.7 16.8 15.9 14.1 14.8
    World 7.4 4.9 6.0 5.6 5.3
    Source: ZenithOptimedia

    ZenithOptimedia has forecasted that world ad expenditure will grow faster than world GDP in every year to 2008. Advertising accounted for 0.96 per cent of world GDP in 2005, and the agency expects this to rise to 0.99 per cent by 2008.

    This would be its first period of consistent out-performance since the late 1990s and suggests that the advertising cycle has at last emerged from the trough it entered in 2001. Advertising will remain well below the peak of 1.08 per cent of GDP it reached in 2000, though, suggesting there is plenty of room for further growth.

    The report also stated that between 2005 and 2008 six of the 10 largest contributors to advertising growth, and 11 of the 20 largest, will be emerging markets. Brazil, China, Indonesia, Mexico, Poland and Russia are all top-ten contributors of new ad dollars. “We expect their ad markets to grow by $19.2 billion between 2005 and 2008 – providing 27 per cent of total world growth – while their share of world expenditure increases from 7.9 per cent to 10.8 per cent.

    Top ten contributors to advertising expenditure growth 2005-2008
     Contribution US$m % of market 2005 % of market 2008
    USA 23,318 41.9 40.5
    China  6,441  2.4 3.5
    Russia  5,968  1.3  2.3
    Japan 4,444  10.3  9.7
    UK  3,118  5.4  5.2
    Indonesia  2,512 0.8  1.2
    Brazil 1,661 1.6  1.7
    Spain  1,443 2.1 2.1
    Mexico  1,382 0.9 1.0
    Poland  1,239 0.9 1.0

    China was the seventh-largest ad market in 2005 and the report predicts it to be fifth-largest in 2008. It is expected to grow by 66 per cent over the three-year forecast period, overtaking Italy in 2006 and France in 2008. Also, Russia will be a top-10 market by the end of 2008, leaping from 14th place in 2005 to 8th in 2008 as it more than doubles in size.

    As far as internet is concerned, ZenithOptimedia has revised its internet forecasts upwards once again as it has continued to exceed expectations. Internet will attract 6.5 per cent of all advertising in 2008, up from 4.5 per cent in 2005 (and up from the 6 per cent the agency predicted for 2008 in December).

    The internet is now firmly established as a mainstream advertising medium in developed markets, and in many developing markets too. The report predicts it will overtake outdoor in volume in 2007, even though outdoor is gaining share itself, and that by 2008 it will be catching up with radio too (which will have a 7.9 per cent share, down from 8.5 per cent in 2005).