Zenith Media of the United Kingdom, a 50:50 joint-venture between Cordiant Communications Group Plc and Saatchi & Saatchi Plc, has predicted a boom in adspending worldwide, in its latest report and predictions on the industry till the period to 2002. According to its forecast, world advertising expenditure will increase to $353 billion in 2001 and is expected to be close to $375 billion in 2002. Analysis by the company shows that the Network TV, in the United States has "spectacularly reversed a steady loss of TV share" though it has not been able to arrest audience decline.

The reversal in revenue flow is due to a rising demand from financial, telecom, pharmaceutical sectors and even dotcoms - those sectors that need the Network's leverage for giving campaigns a rapid coverage. The report says that due to this rising demand, "brought an unexpected $2billion into the network marketplace in 1999, and the current trading will certainly carry this momentum well into 2001." On the other hand, cable has been on an upward trend and has remained unaffected. According to the report, cable ad revenue is expected to increase by 24 per cent in the current year. The report predicts that it will ease to an unsustainable 12 per cent in 2001 and 2002. Zenith Media that services lients like Alcatel, Allied Domecq, Bell Atlantic, Brtish Amercian Tobacco, Procter & Gamble, notes that adspend that had grown by 0.96 per cent in 1995 and 1.02 per cent in 1999, is expected to increase by 1.03 per cent by 2002. Another area highlighted by the report is the growing popularity of radio in Europe, mainlydue improved research and more efficient selling.

Zenith says that radio has grown ahead of the market since 1998 and is expected to grow further. During 1998, adspending over radio was 5 per cent of the total ad-budget, that increased to 5.2 per cent in 1999 and is expected to increase to 5.3 per cent by 2002. The report comments that the Asian economies have rebounded with a double-digit growth, while the Japanese advertisement market that contributes to 11 per cent of the world ad-spending, has stagnated. Excluding Japan, the adspending in the region is expected to increase by 16 per cent in 2000, up from 4 per cent in 1998.

Another point highlighted in the report is the fact that adspending in China is in double-figures. However, the report says that with certain structural weakness in the economy, advertisers might moderate their enthusiasm. This, according to Zenith, might drag the growth back to single digits by 2002.