Advertising spending hit worse than in last recessionDecember 8th, 2008 - 6:28 pm ICT by ANI
London, Dec 8 (ANI): A survey has pointed out that global advertising spending will fall 0.2 per cent next year, which is worse than the performance in the 1990s recession.
The prediction being made by Zenith Optimedia, the industry forecaster, on December 8 at the annual UBS media conference in New York, came after cutting its previous forecast of 4 per cent growth.
This is comparable with but slightly worse than the picture in 1991, when ad revenues rose slightly. It is worse than 2001, when that downturn was the bursting of the Internet ad bubble. Here the real economy is hurting, Times Online quoted Jonathan Barnard, its head of publications, as saying.
Britain has been seen by Zenith, which is part of Publicis, the advertising group, as the one country that will outperform the global trend, registering 1 per cent overall growth.
That reflects a belief that the downturn came early to the UK and that Internet advertising, which is growing healthily, is a larger part of the British advertising spending.
Internet ad spending, already more than a fifth of total advertising, will grow by 16.8 per cent, while Zenith expects newspapers to suffer a 3.6 per cent fall and television 3 per cent.
Yet despite the Internet growth, Zenith said that global ad spending would shift towards television to a record market share of 38.5 per cent in 2010.
In previous downturns television’’s share has improved because it is seen as tried-and-trusted and also because people spend more time at home.
The worst performing countries are expected to include the United States, down 5.7 per cent, Germany and Spain.
Western Europe is expected to suffer a fall of 1 per cent in value terms. Zenith expects a mild recovery to begin in the third quarter of 2009. (ANI)
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