The agency is predicting that online adspend will attract 6.5% of all advertising in 2008, up from 4.5% in 2005. This is up from the 6.0% it predicted for 2008 back in December.
Crucially, it will pass outdoor advertising next, with radio advertising set to be the next after that to be superseded by online.
"We predict it will overtake outdoor in volume in 2007, even though outdoor is gaining share itself, and that by 2008 it will be catching up with radio too, which will have a 7.9% share, down from 8.5% in 2005."
"The internet is now firmly established as a mainstream advertising medium in developed markets, and in many developing markets too."
The figures come as part of ZenithOptimedia's latest adspend forecasts, which estimates that the World Cup in Germany will generate over 拢570m in advertising revenue.
The tournament looks set to be the biggest World Cup to date, as advertisers flock to be involved in the championship, which kicks off on June 9.
Brands such as Mars, which is changing its name to Believe for the tournament, Carlsberg, Nestle Rowntree, Scottish & Newcastle and Ladbrokes, among others, have all unveiled major marketing initiatives to cash in on the World Cup.
Jonathan Barnard, ZenithOpimedia's head of publications, told The Observer that because the tournament is taking place in Europe, where four of the world's five large advertising markets are located, it means total revenue will probably be about $1bn (拢572m).
The tournament looks set to be the biggest World Cup to date, as advertisers flock to be involved in the championship, which kicks off on June 9.
Brands such as Mars, which is changing its name to Believe for the tournament, Carlsberg, Nestle Rowntree, Scottish & Newcastle and Ladbrokes, among others, have all unveiled major marketing initiatives to cash in on the World Cup.
Jonathan Barnard, ZenithOpimedia's head of publications, told The Observer that because the tournament is taking place in Europe, where four of the world's five large advertising markets are located, it means total revenue will probably be about $1bn (拢572m).
ZenithOptimedia is forecasting that ad expenditure, which grew 4.9% in 2005, grow over a percentage point faster, by 6%, in 2006 on the back of the World Cup. It is expecting growth to slow the following year, but remain above trend, to 5.6% in 2007 and 5.3% in 2008.
"We forecast that world ad expenditure will grow faster than world GDP in every year to 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," ZenithOptimedia said.
The boost is a welcome fillip for the industry, which faces a tough year. ZenithOptimedia's prediction of an increase in adspend this year has been described as highly optimistic by some other agencies and media owners.
The agencies' lower predictions suggest that, despite the boost of this summer's World Cup, ad growth will be minimal. Some have suggested that without the World Cup, ad revenue in 2006 would have fallen, the first year-on-year decline since 2001.
The agency is forecasting that between 2005 and 2008, six of the 10 largest contributors to ad growth, and 11 of the 20 largest, will be emerging markets, with Brazil, Indonesia, Mexico, Poland and Russia all top-10 contributors, with China leading the way.
"We expect [China] to grow by 66% over the three-year forecast period, overtaking Italy in 2006 and France in 2008. We think Russia will also be a top-10 market by the end of our forecast period, leaping from 14th place in 2005 to 8th in 2008 as it more than doubles in size," ZenithOptimedia said.
Overall it expects these emerging ad markets to grow by $19.2bn between 2005 and 2008 -- providing 27% of total world growth -- while their share of world expenditure increases from 7.9% to 10.8%.
If you have an opinion on this or any other issue raised on Brand Republic, join the debate in the .
_1.jpg)
.jpg)
