Cable Shines in Zenith Ad Forecast


Media agency Zenith Optimedia is expecting increases in advertising spending of 3.5% in 2012 and 2013, according its latest forecast.
The increases come on top of a year of recovery in 2011 that should see advertising grow 2.2%, according to Zenith estimates.
Among the media expected to see good gains in 2012 are national cable, up 10% and, thanks to an election year, spot TV should gain 8%. Network is expected to drop 1%, while the forecast for syndication calls for a 12% decline.
Zenith predicts cable will have a larger share of ad spending than the broadcast networks in 2011, and that that trend will continue for the foreseeable future, despite the Olympics returning to NBC in 2012.
"Cable networks will continue to build momentum - especially those seen as alternatives to broadcast prime (USA, TBS, TNT, FX), largely thanks to the return of big-spending automotive and financial advertisers," Zenith said in its forecast.
By contrast, Zenith noted: "In real terms, the broadcast networks are not making the same ad dollars as they did several years ago. In an effort to generate new streams of revenue, networks are looking to licensing and retransmission fees."
On a global basis, Zenith expects the ad market to grow 4.7% in 2012 following a 3.5% gain in 2001. The Olympics, U.S. elections and a recovery in Japan are adding $7 billion, or 1.6 percentage points to the gains.

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