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Top media buyer cuts ad spending forecasts
A leading international media buyer has slashed its global advertising spend forecasts for the second time in two months, predicting that world ad spending would now decline in 2009, by 0.2 per cent.
- Reuters
- Published: 23:32 December 8, 2008
London: A leading international media buyer has slashed its global advertising spend forecasts for the second time in two months, predicting that world ad spending would now decline in 2009, by 0.2 per cent.
ZenithOptimedia last published its forecasts in early October when it said growth in 2009 would hit 4 per cent.
"It is now clear that the ad market is in the middle of a sharp downturn," it said. "Consumer and corporate confidence has been severely shaken, and the economic outlook is uncertain.
"Because of the general economic volatility there is greater degree of uncertainty than usual to our forecasts, and we are keeping them under monthly rather than quarterly review."
Zenith said it now expected ad expenditure to decline 5.7 per cent in North America in 2009 and 1 per cent in Western Europe, much lower than its previous forecasts of 0.9 per cent growth and 2.6 per cent growth, respectively, published just two months ago.
Developing markets
The report said the credit problems had also slowed the advance of some developing markets, particularly in Asia Pacific and Central & Eastern Europe.
"We have reduced our forecasts for ad expenditure growth in 2009 from 5.2 per cent to 3.2 per cent in Asia Pacific, and from 12.7 per cent to just 1.5 per cent in Central & Eastern Europe amid fears about the economic stability of markets like Hungary, Turkey and Ukraine," it said.
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