ZenithOptimedia today (Monday) revised its outlook for global ad spending, forecasting that internet advertising spend will overtake outdoor in 2007 and pull alongside radio in 2008, reports MediaPost. "We have revised our internet forecasts upwards once again as it has continued to exceed expectations. We now predict it will attract 6.5% of all advertising in 2008, up from 4.5% in 2005 (and up from the 6.0% we predicted for 2008 back in December)," ZenithOptimedia said in a statement (.doc).
The Internet is now the fastest-growing major medium, according to research firm, increasing at a rate faster than that of outdoor, which is also on an upward swing. It has revised its 2006 outlook to 6.0 percent growth in global ad spending, up slightly from 5.9 percent forecast in December 2005 - and 5.2 percent growth in the U.S., up from it previous forecast of 5.1 percent.
"We forecast that world ad expenditure will grow faster than world GDP [gross domestic product] in every year to 2008. Advertising accounted for 0.96% of world GDP in 2005, and we expect this to rise to 0.99% by 2008. This would be its first period of consistent out-performance since the late 1990s and suggests that the advertising cycle has at last emerged from the trough it entered in 2001. Advertising will remain well below the peak of 1.08% of GDP it reached in 2000, though, suggesting there is plenty of room for further growth," ZenithOptimedia said.