TV is continuing to increase its share of the overall advertising market, according to media agency ZenithOptimedia.
It forecasts that the proportion of all advertising revenues for which TV accounts will top 40% this year compared with 39% last year and 38% the year before that. The overall share that TV takes will continue to increase through 2011 and 2012, according to Zenith.
“Television did relatively well in the downturn and continues to do well as the world recovers,” Zenith noted. “New technologies, such as hard-drive recorders and high-definition channels, are encouraging viewers to watch even more television.”
The media agency has again upgraded forecasts for overall advertising revenue growth after a stronger than expected first half of the year in the US and Western Europe. It has raised expectations for this year to 3.5% growth, ahead of earlier forecasts of a 2.2% increase in advertising revenues. It adds that the growth will continue and come in at 4.5% next year and 5.3% in 2012.
Zenith forecasts that TV advertising revenues this year will come in at US$177.7 billion compared with US$166.9 billion last year. The 2011 total will be US$187.4 billion, rising to US$197.6 billion in 2012.
The return to growth after the economic downturn follows the pattern seen after the last two recessions although the renewed growth rates are lower this time.