ZenithOptimedia Downgrades Latin American Ad Spend Predictions to 7.8%

Global advertising spending is set to grow by 4.3 percent to $502 billion this year, a slightly slower rate than previously predicted, dragged down by Europe's ongoing debt crisis, according to market research group ZenithOptimedia.

ZenithOptimedia scaled back its growth forecasts for Asia to 6.7 percent from 7.4 percent in March, and it now sees growth in Latin America of 7.8 percent, instead of 9.2 percent.

Only North America is proving more resistant, with Zenith maintaining its forecast for 3.6 percent growth this year.
The effects of Europe's woes are being felt even in fast-growing emerging markets of Asia and Latin America.
Ad spending by big companies will get a boost this year from big events such as the London Olympics, the Euro 2012 football championships, and the U.S. presidential elections. The events are expected to add $6.3 billion to the global ad market, concentrated from June to November.

"The ad market slowed in April and May as advertisers became more cautious about the state of the global economy," ZenithOptimedia said in a statement on Tuesday.

"The Greek elections have revived fears of a euro zone breakup. ... Economic growth has slowed across the developed world and recessions have deepened in Southern Europe."

As a result, ad spending will actually shrink by 1.1 percent in the 17 member states of the euro zone this year, with Spain, Italy, Greece and Portugal being hit the hardest.

The forecasting group, which is part of advertising group Publicis, left its forecasts for 2013 and 2014 unchanged. It had previously seen growth this year of 4.8 percent


Trackback from your site.

Editorial Staff (@portada_online)

Portada is the leading source of news and analysis on the Latin Marketing and Media space. Credibility is our biggest asset: The Portada team is very passionate about producing high-quality independent content that helps drive forward the Latin Marketing and Media space.
El equipo editorial de Portada se apasiona por elaborar contenidos de alta calidad. La credibilidad es nuestro mayor activo. La misión de Portada es ayudar a profesionales de negocios y medios a comprender y alcanzar a consumidores latinoamericanos, del mercado hispano de EE UU y España.

MORE FROM PORTADA

#Portada16: Are Multicultural Media Buying Agencies Necessary?

#Portada16: Are Multicultural Media Buying Agencies Necessary?

One of the key highlights of the many sessions of #Portada16, co-produced with MediaPost last week, was the panel "Do Multicultural Media Buying Agencies have a Reason to Exist? The panelists argued passionately on a topic that is at the very crux of Multicultural Marketing and Media.


Lionsgate & Univision Launch Spanish-Language Movie Streaming Service 

Lionsgate & Univision Launch Spanish-Language Movie Streaming Service 

Lionsgate, the next generation global content leader, and Univision Communications Inc. are teaming to launch a premium subscription video on demand (SVOD) service for the booming Hispanic movie-going audience in the U.S.The new premium on demand movie service will tap base of more than 50 million hispanic consumers in the U.S.


IPG Mediabrands and Innovid Announce Partnership, New Technology to Improve OTT Video Experience

IPG Mediabrands and Innovid Announce Partnership, New Technology to Improve OTT Video Experience

IPG Mediabrands and Innovid have launched a partnership and set of products that could make waves in the video advertising world.