PARIS, June 16 The global advertising market is
set to grow 5.4 percent this year to reach $524 billion helped
by a boost in television ads during the soccer World Cup,
according to media buyer Zenith Optimedia.
The Publicis-owned forecasting unit shaved 0.1
percent off an earlier prediction for the year after political
tumult in Ukraine damaged the local economy.
The world's largest advertising groups such as Martin
Sorrell's WPP, second-place Omnicom and
third-placed Publicis often post growth rates correlated with
global gross domestic product. They are set to benefit this year
as the United States - the largest ad market followed by Japan
and China - is expected to grow steadily.
Zenith said the total amount of media spend will reach up to
$524 billion at year end, driven by an improved global economic
outlook and the rapid rise of mobile advertising.
"Growth will continue to improve over the next two years,
reaching 5.7 percent in 2015 and 6.1 percent in 2016, driven by
continued economic recovery, including, at last, the Eurozone,"
said Zenith Optimedia in a statement.
Despite an uptick during the World Cup in June and July, the
forecasters also said that television's share of global
advertising spending would peak this year after rising steadily
for decades from 29.9 percent in 1980 to 39.6 percent in 2013.
Behind the shift lies the rapid growth of Internet
advertising, which is growing 16 percent a year compared to 4
percent for television. Major companies from auto makers to
consumer products now see on-line ads as being suitable for
brand building much as television once was.
Television's share of ad spend will erode to 39.4 percent
this year and 38.3 percent by 2016, according to Zenith.
Publicis shares are down 5.1 percent this year, while WPP's
and Omnicom's are both down 5.6 percent.
(Reporting by Leila Abboud; Editing by Stephen Powell)