ZenithOptimedia reports that the global economy in 2004 seems likely to grow at or faster than its long-term growth rate for the first time since 2000. The media services agency cites the London-based global bank HSBC as forecasting real growth of 2.7% in 2004. Because advertising expenditures rise faster than the wider economy in an upturn, ZenithOptimedia is projecting North American advertising spending to top $154.2 billion this year and grow to $176 billion by 2006.
The U.S. advertising marketplace has performed strongly in 2003. Total ad spending across 11 measured media for the first half of 2003 is 7% higher than the same period a year ago. The U.S. will continue to account for over 45% of global ad expenditure 2004-2006, and improved U.S. corporate profitability is cited as the most important recent development to support an advertising recovery.
The U.S.’s largest advertisers are driving this growth, with a combined spending increase of 16%. The current financial picture for most of these companies is generally good, indicating a strong 2004.
The top U.S. advertisers have bested their second quarter earnings estimates by an average of 10%. The top ten U.S. advertisers are.
General Motors Corp.
Time Warner Inc.
Ford Motor Co.
Walt Disney Co.
Johnson & Johnson
Altria Group Inc.
More information on projected advertising spending.