Advertisers are looking forward to next year’s FIFA World Cup and Winter Olympics to save their industry from continued decline.
With the slowing world economy, advertising budgets are being squeezed from all sides, which led to a decline in world advertising spend. Even the bright light of advertising, online marketing dipped in the first quarter of 2009 by 5 per cent in the US.
With the slight exception of the ICC World Twenty20 cricket this year, major sporting events have been absent from the 2009 calendar, but 2010 brings the welcome return for traditional and online advertising companies to promote their brands at both the football world cup and the winter Olympics.
According to marketing forecasts from ZenithOptimedia, 2009 will see a 6.9 per cent decline in global advertising, but will start to recover with the advent of the great sporting events. The prediction is that advertising will grow by nearly two per cent in 2010, up to a monumental $463 billion.
ZenithOptimedia urged companies not to slash advertising budget if they wished to survive the recession: “In uncertain times advertising is often treated as a discretionary expense and cut early, despite much research that shows companies maintaining their ad expenditure in a recession come out of it stronger than those that do not,” reported The Daily Telegraph.
Digital media has a chance to capitalise on the decline of the advertising industry, with the benefits of cheaper and more effective online advertising gaining traction in the industry. Online marketing campaigns to promote the world cup in particular, are set to be extremely lucrative for top advertising markets, and will no doubt boost local advertising in South Africa also.