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TV advertising worse than expected, but increasing share

The latest TV advertising revenue share forecasts show that 2009 has got off to a worse start than expected, but that TV is increasing its share of the overall advertising market as people stay home and tune in.

ZenithOptimedia has issue a revised projection for the ad market that reveals the worldwide advertising market has “taken a substantial turn for the worse” since the ad research house issued its last forecasts in December.  The first three months of 2009 were at least as bad as the last quarter of 2008 and there is little visibility, Zenith reports.

TV ad share will fall 5.5% this year, but Zenith says that, compared to other sectors, TV is faring relatively well, meaning it will increase overall market share from 38.1% in 2008 to 38.6% in 2009 and to a record level of 39.3% in 2010.

“Advertisers that cut budgets across the board will often cut television last, since they know it best and are convinced of its effectiveness,” Zenith noted. “Some advertisers are taking advantage of reduced prices to build their brands and market share while their rivals concentrate on promotions and sales.”

By category retail has remained “fairly robust” as have FMCG ads. Finance, auto and travel, meanwhile, have all been hit hard.

Geographically, Western Europe has recorded the sharpest year-on-year declines in ad expenditure, but Zenith forecasts that all of the major territories in the region will grow in 2010 with the exception of Italy.