Zenith Media recently released a report on global advertising trends. The report predicts a rather dismal picture of global advertising, which wrecks all hopes of recovery in 2002.
The following are some of the key findings on global advertising:
Recovery is underway in Asia excluding Japan, while the two largest advertising markets, USA and Europe are stabilizing at pre-boom 1998/9 volumes.
The global total of advertising expenditure in major media, (newspapers, magazines, television, radio, cinema and outdoor) has fallen from $315,597 million in 2000 to $302,033 million in 2002, but is expected to increase to $326,930 million by 2004. However, Asia and North America have seen a slight increase in their advertising spends leading to a more little more optimistic 2002.
The Gross advertising billings of Quarter1 of 2002, when compared to the Quarter1 of 2001 have witnessed shrinkage. The exception however is USA, which saw a 0.2% increase in billings.
By the end of 2002, the five big European economies (UK, France, Italy, Germany, Spain) will have shed 8% of their 2000 advertising volume in real terms.
Asia excluding Japan is growing at a 7% constant in 2002 (December: 3%), with 2003 and 2004 averaging 6%. This growth in Asia is consistent with the forecasts of the current GDP, which is the most reliable indicator of advertising.
Global advertising shrank by over six percent in real terms in 2001, twice as deep and double the speed of the ad recession ten years ago, and is certainly pausing in 2002.
The global annual ad market for the major media peaked in 2000, and is expected to trough in 2002.
Click here to view a more in-depth analysis of the Zenith Media Report