April 11 – Football will be one of the main beneficiaries from a global growth in advertising rates, and commercial television will be the most dominant medium within that growth. For football’s rights holders that is good news as ad-driven TV stations will be able to afford premium rights, and sponsorship values will continue to grow as mass market audiences are delivered.
A new report from ZenithOptimedia projects as te global economy strengthens, global advertising growth rates will return to pre-financial-crisis levels.
The report says there was a 3.9% growth rate in 2013 and forecast a 5.5% growth rate in 2014. There were projections of a further 5.8% rise in 2015 and 6.1% in 2016.
In 2014 the ad market is being boosted by the Winter Olympics, but more particularly by the World Cup (American midterm elections were also cited as a boost to the ad market),
“In general, advertisers are in a strong position to invest in expansion, with large reserves of cash and high profitability,” ZenithOptimedia said.
The report said there had been a 15% drop in ad spend in the Eurozone since the financial crisis began in 2007. In 2013, advertising in the Eurozone fell by 3%. But there is 0.7% rise predicted this year, the first year of growth since 2010.
Television held a 40% share of ad spend in 2013 and this is expected to grow by 5.2% in 2014. The web is the fastest-growing medium, led by display ads. Mobile advertising is also gaining ground after a long and over-hyped wait.
“Advertisers are gaining in confidence as the world economy returns to stable growth,” said Steve King, ZenithOptimedia’s worldwide CEO. “They will find plenty of opportunities to generate strong returns on their advertising investment in the fast‐growing digital media, but should remember that television has lost none of its power to reach large and engaged audiences.”
The US was the world’s largest advertising market in 2013 ($167.3 million), followed by Japan ($53 billion), China ($41 billion), Germany ($23.2 billion), and the UK with $20.4 billion (£12.3 billion). All ahead of Brazil ($16.4 billion) and Australia ($13.1 billion).
Social media (growing at 29%a year) and online video (23%) are starting to benefit to get on to media buying schedules, which is helping to sustain their rapid growth.
Internet display spend is predicted to overtake paid search for the first time in 2015, according to ZenithOptimedia. By 2016, internet display ads pend will total $74.4 billion (£45 billion), while paid search will hit $71.1 billion (£42.9 billion).
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