Most experts are predicting a decline in advertising spending this coming year, except on the Internet, where huge gains are forecast, according to a report in today’s New York Times .
Steve King, worldwide chief executive at ZenithOptimedia, part of the Publicis Groupe, cut his growth forecast for 2005 to 2.9 percent over 2004 from a previous estimate of 3.6 percent, citing higher oil prices and the lingering effects of this past hurricane season. He also cut his forecast for 2006 to a gain of 5.1 percent from 2005 compared with his previous forecast for a gain of 5.7 percent.
But on the Internet, King predicted a 15 percent increase in 2005 compared with 2004 and a 22 percent increase in 2006 compared with 2005.
“Even more conservative advertisers are starting to use [the Web] regularly,” said King, “as part of their marketing mix.”