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Zenith Sees Cable, Internet Pacing 2012 Ad Increases

ZenithOptimedia raised its forecast for advertising growth in the U.S., with cable TV and the Internet expected to post double-digit gains.

The media buying agency projects a 3.6% increase in total U.S. ad spending for 2012.  Total TV spending is expected to rise 5.1% in2012, with gains of 3.1% expected in 2013 and 4.2% in 2014.

"As we move further past the recession, we expect continued increases of 3.8% in 2013 and 4.8% in 2014. Fortunately, most of the large financial, retail and automotive spenders have returned to the marketplace," the network said in a report released Tuesday. "We continue to see TV dollars moving from network to cable, and this trend will likely continue as cable networks continue to add quality programming to their lineups."

Zenith anticipates strong cable spending going forward, with continued increases of 1% in 2012, 10.5% in 2013 and 11% in 2014.

Zenith sees ad spending on broadcast network TV dropping by 1% in 2012, with growing declines of 2.5% coming in 2013 and 3% in 2014.

The 2011 spot TV marketplace saw increases in several key categories, according to Zenith. Zenith expects the gains to be carried on annually with increases of 8%, 2% and 4% for 2012, 2013 and 2014, respectively.

Syndication spending in 2012 is expected to decline by 12%, followed by a 10.5% decrease in 2013 and another 11% drop in 2014.

Zenith raised its forecast for global advertising expenditures to $489 billion in 2012, up 4.8% from 2011, and up from its original forecast of 4.7% growth.

The agency says the upgrade results from two factors. The first is signs that largest companies are investing more in marketing to drive growth. The second is that it appears less likely that there will be a disastrous economic collapse in the Eurozone.

Zenith also raised its global forecast for 2013 to reflect 5.3% growth and sees spending posting a gain of 6.1% in 2014.