TV's Share of Ad Dollars Tops 40% This Year
Source: CableSpots, July 20, 2010
TV continues to increase its share of the overall advertising market, according to data from media agency ZenithOptimedia, and reported by TBIvision.com. The agency forecasts that the share of ad dollars going
to all of TV will hit 40% this year compared with 39% last year and 38% the year before that. The overall share for TV should continue to increase through 2011 and 2012.
“Television did relatively well in the downturn and continues to do well as the world recovers,” Zenith noted. “New technologies, such as hard-drive recorders and high-definition channels, are encouraging viewers to watch even more television.”
ZenithOptimedia has upgraded its revenue forecasts for global advertising after a stronger than expected first half of the year, especially in the U.S. and Western Europe. It has raised the estimate for this year to 3.5%, ahead of earlier forecasts of a 2.2% increase in advertising revenues. And the agency forecasts growth will continue at a rate of 4.5% next year and 5.3% in 2012.
Zenith had a more pessimistic outlook earlier this year, calling for a 1.5% decrease in North American ad expenditures. The new forecast calls for 1.3% growth – again, in North America only.
The return to growth after the economic downturn follows the pattern seen after the last two recessions although the renewed growth rates are a bit lower this time.
ZenithOptimedia noted that network TV had a very health first quarter in the U.S. and that was followed by 6% to 10% rate increases in the upfront market for commercial time during the 2010-2011 season.
Zenith estimates that TV advertising revenues this year will come in at $177.7 billion compared with $166.9 billion last year. The 2011 total will be likely be $187.4 billion, rising to $197.6 billion in 2012.
Internet ad spending, the biggest medium after TV and newspapers, should increase its share to 17.1% in 2012 (from 12.7% in 2009), helped by very rapid growth in Internet mobile and social media, the agency said. Newspapers have been losing share every year since 1987, when they accounted for 40.6% of all ad spending. By last year, that share had fallen to 23%. Zenith says that number will fall to 19.2% in 2012.
The forecast calls for a slight gain in ad dollars for out of home media, and a slight decrease in radio ad dollars for 2010.
