Despite "unprecedented economic problems" that may precipitate a 6.9% global decline in advertising expenditures this year, television is fairing relatively well in the downturn, according to a report released by ad agency Zenith Optimedia.
The report predicts that TV ad expenditures will fall 5.5% for 2009 but that decline is less steep than other mediums such as newspapers, magazines, and radio. Zenith also predicts an increase in market share for television from 38.1% in 2008 to 38.6% in 2009, followed by a record 39.3% in 2010.
"Advertisers that cut budgets across the board will often cut television last, since they know it best and are convinced of its effectiveness," the report stated. The medium may also be benefitting from the fact that people are spending more time at home and watching more TV.
The only medium expected to see higher ad expenditure in 2009 from the past year is the Internet, with 8.6% growth expected with market share expected to increase in each of the next three years. However, this year's expected jump is significantly less than last year's growth of 20.9% in expenditures.
Overall, advertisers are expected to spend $173 billion on TV ads in 2009, down from $183 billion last year. Total ad expenditure across all medium is predicted at $448 billion, down from $481 billion in 2008. However, a slight recovery (up to around $455 billion) is expected in 2010 and another increase in 2011.