Tuesday, December 7, 2010

Internet, Emerging Markets to Fuel Ad Growth in 2011

By Kristen Schweizer and Sarah Rabil, Bloomberg.

Dec. 6 (Bloomberg) -- Worldwide advertising spending will continue to recover next year, led by expanded Internet marketing and outlays in emerging economies, according to researchers ZenithOptimedia Group Ltd. and Magna Global.

Spending will increase 4.6 percent next year, after “surprisingly strong” 4.9 percent growth in 2010, said ZenithOptimedia, a company owned by Publicis Groupe SA that buys advertising for clients including drugmaker Sanofi-Aventis SA. Magna, which tracks ad sales not spending, projects 5.4 percent growth in 2011, following a 6.9 percent gain this year.

Web advertising is growing three times faster than the market as a whole, according to ZenithOptimedia. China will become the third-largest ad market behind the U.S. and Japan next year, displacing Germany, it said. While spending is recovering after the 2008 financial crisis, advertising growth is short of the “long-term trend rate of 6 percent,” London- based ZenithOptimedia said.

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