NEW YORK ( TheStreet) -- Advertising spending globally is growing slower than expected this year due to Europe's recession but is poised to accelerate in 2014 and 2015, according to Zenith Optimedia, a division of Publicis Groupe (PUGBY), the world's second-largest media buying firm.
Zenith Optimedia cut its forecast for global advertising spending for 2013 to 3.5% from 3.9% but projects the industry to grow by 5.1% in 2014 and 5.8% in 2015 led by mobile ad sales.
The reduced forecast for 2013 is attributable to the continuing recession in the eurozone, and security concerns in and around the Korean peninsula, the agency said in a statement. "The economic recovery that economists hoped to see in the eurozone in the second half of 2013 appears to have been postponed until the beginning of 2014," Zenith Optimedia said.
Internet advertising is on track to contribute 66% of all global growth in ad spending by 2015. The boom in mobile advertising is being fueled by "better measurement of exposure" to new digital devices and innovations, says Zenith Optimedia.Mobile advertising spending is the fastest growing segment of Internet advertising, on pace to increase five times greater than desktop Internet advertising, said Zenith Optimedia. Mobile ad sales are expected to grow 67% in 2013, and average an increase of 51% from 2012 through 2015, the agency said. The U.S. accounted for 33% of global advertising spending last year followed by China at 18%, Argentina at 7% and Indonesia at 6%, Zenith Optimedia said. -- Written by Leon Lazaroff in New York >To contact the writer of this article, click here: Leon Lazaroff