|ZenithOptimedia has upgraded its media spend prediction up to 7.9 per cent year-on-year, from the previous 6.3 per cent prediction, on the back of strong demand, though has warned of increasing volatility.
As reported in B&T, the media agency said the first six months of the year saw a sharp rise of ad investment year on year, with new digital channels pushing TV ad spend up close to 20 per cent in the calendar year to date, with online spend up 17 per cent. The rise in spend was also attributed to the push from retailers as the effect of the government's stimulus package slows down and rising interest rates.
The Publicis agency warned it expected year-on-year advertising growth to slow in the second half of the year, as the market was less depressed in the second half of 2009. Despite the growth, it said there will be increasing volatility in the market leading to more short term changes than is normal.
There are mixed signals about the strength of the economic rebound in Australia, the agency claimed, with the latest consumer sentiment figures showing mixed signals. Consumer confidence fell again in May, marketing the biggest back-to-back monthly falls in more than two years.
Business confidence has also fallen, the agency said, despite relatively positive conditions, on the back of European financial instability, declines in the dollar and equity prices. However, the increase in political advertising in the run up to the
Federal election will add another boost to the second half of the year.
Globally, ZenithOptimedia upgraded its global ad expenditure growth to 3.5 per cent, up from the 2.2 per cent it predicted in early April. This was the third upgrade in a row, after six consecutive downgrades. In Asia-Pacific growth of 10.6 per cent is expected in 2010.
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