Zenith Sees 3.5% Ad Growth In 2012, 2013

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Despite the stock market's double digit drop in the last quarter, media agency ZenithOptimedia remains fairly optimistic about U.S. advertising spending and sees particularly big gains for cable television.
ZenithOptimedia is projecting a 2.2% increase in advertising for 2011, up from the agency's 2.1% forecast in July. ZenithOptimedia is also forecasting 3.5% increases in both 2012 and 2013.
For TV, the media agency sees cable growing 12% this year, while the broadcast networks decline 2% and syndication slips 4%.
TV dollars will grow in 2010, but ZenithOptimedia is predicting that cable will garner a larger share of spend in 2011 and beyond.
Network spending was down year-to-year in the first quarter of 2011 because of the absence of the Olympics, fewer March Madness men's basketball games on CBS, and the shift of college football bowl games to cable. ZenithOptimedia predicts that network TV will end the year down 2%, a revision of its July forecast that spending would be flat. The agency also predicts a 1% decrease in 2012 despite the return of the Olympics to NBC.
ZenithOptimedia expects that 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. The forecast calls for cable to grow 12.0% in 2011, 10.0% in 2012 and 10.5% in 2013.
Read more at B&C here.