The media agency predicted growth of 2.9% in its June advertising expenditure forecast, but has now revised that figure up to 3.2% in current prices to $325bn (£202.6bn).
While a number of analysts point to improvements in the US market, the news for the UK is not as bright. ZenithOptimedia, headed in the UK by chief executive Antony Young, predicts an increase of only 0.5% to $15.3bn in 2003.
The company said that there are no real growth prospects in UK press and that the autumn television market showed no surging recovery. Despite few signs of recovery, it still boosted its full-year prediction up by £6m to £3.15bn from par in its June forecast. However, it noted that autumn includes about £50m of non-recurring campaigns including TV promotions and directory enquiry deregulation.
However, the outdoor market was a bright spot in the UK market. Zenith said that demand for outdoor shot up 17% in the first quarter and 6% in the second.
"Lead times are stretching back towards the 'traditional' 12 weeks; all types of stock are well-sold, and we confidently raise our full-year forecast from 6% to 8%," it said.
The media buyer said that especially active categories include motors, food and business and industrial, which are up between 70%-90% year on year.
"We remain confident the European Championship will help drive TV revenue up 4% in 2004. The hysteria has, indeed, already started," the agency said.
The US market was the real bright spot of the report, with ZenithOptimedia forecasting growth of 3.2% in 2003. The agency upped growth predictions on sectors, including spot television, magazines, outdoor and cinema.
In its statement, ZenithOptimedia reported that July in the US experienced a 6% increase against last year after two quarters of little to no growth.
"We are seeing a surge in advertisers going into the local marketplace based on a strong network scatter market. Automotive, furniture stores, home and department stores, banks and package goods are categories that have increased their spend in the first half of the year."
It said that US outdoor advertising is expected to benefit greatly from the strengthening of the overall economy with growth fuelled by distilled spirits, fashion, telecommunications and entertainment. Zenith said it anticipated an increased growth rate through 2005.
ZenithOptimedia said that while Germany was the first of the big European economies to upgrade this year, all are "badly in need of a tug from the US". It said that the French market remains in or near recession, while Germany had recorded its best month in July 2003 since November 2000.
The Asia-Pacific region is forecast to see an increase in adspend of 4.1%, although the largest market, Japan, will increase by only 0.8% with the second half showing growth of 1.8%.
If you have an opinion on this or any other issue raised on Brand Republic, join the debate in the .
.jpg)
.jpg)