ZenithOptimedia: Global advertising investments continue to grow in 2011 and 2012

Media, Studies

According to ZenithOptimedia’s predictions, Romanian market will be in decline in 2011, with a small rebound expected for the beginning of 2012. The decrease for 2011 is estimated to 4%, with variations on media channels: TV – 4%, while press will register budgets decreased by 13%. In what concerns radio, cinema and OOH, the trend is downwards. Internet is the only media that grows in Romania, with around 25%, according to Zenith’s estimates.

ZenithOptimedia’s prediction of advertising spending growth for 2011 is of 3.6%, after a slow decrease of investments in the end of this year. For next year, the media agency sees a 5.3% growth, in spite of stock market instability.

The emerging markets are estimated to growth their share on global market from 31% in 2010 to 34.9% in 2013, with Eastern and Central Europe evolving with 10.4% per year between 2010 and 2013. On the other hand, internet will be the media channel with the highest growth in the same period of time, with 14.6% per year. TV continues to be a powerful medium, with the strongest growth of attracted advertising investments, of 46% of the total.

ZenithOptimedia rectified downwards by 0.5% its predictions regarding the development of international advertising market in 2011. The slow economic recovery, combined with the fears related to the double hit of recession determined some advertisers to adjust their budgets for the end of 2011, without cancelling campaigns or straight cutting the budgets.

For the moment, the total advertising investments value is estimated to $466 BN for 2011, up from $450 BN in 2010.

A similar decrease was made also in what concerns the predictions related to 2012 advertising investments, from 5.9% to 5.3%. Next year is one that will see increased budgets due to Olympics in UK , European Football Championship from Poland and Ukraine and presidential elections in US. For 2013, the prognosis see a very small decrease, from 5.6% to 5.5%.

Globally, internet grows faster than any kind of media, with a market share of 14.6% between 2010 and 2013. Display advertising is the segment with the highest ascension, growing with over 17.2% per year, mainly put in motion by online video and social networks.

The main strength of the international advertising remains the TV, that will see ad investments increased by 46% between 2010 and 2013. TV increased its share constantly with time: 39.8% share in 2010, higher by 37% than in 2005, and its estimated to attract 40.5% from total in 2013.

Newspapers and magazines started their decline in 2007, with a short break for magazines in 2010, when the advertising consumption remained stable. Zenith expects this decline to match the predicted period. Magazines suffer less than newspapers because the experience of reading them is not that easy to replicate online and because they aren’t based on delivering info on time.

ZenithOptimedia is one of the top international media agencies, with 218 offices in 72 countries. ZenithOptimedia is part of Publicis Group and member VivaKi.

Zenith Media Romania is one of the most powerful media agencies in Romania, offering services high quality services of communication planning on all media channels, offline and online.

In its portfolio there are clients such as BRD-GSG, Carrefour, Chipita, Ficosota, ING Group, L’Oréal, Nestlé, Puma, Reckitt Benckiser and Tnuva.

In 2008, Zenith Media launched Zed Digital, that become one of the most important interactive agencies in Romania.