Top Story

e4m_logo.png

Home >> International >> Article

International: Zenith slashes global ad forecast again

03-September-2001
Font Size   16
Share
International: Zenith slashes global ad forecast again

According to a forecast by Zenith Media published on Aug. 31, the global advertising recession is going to get worse and will not return to real growth in the big seven advertising markets in 2002.

In its previous July report covering 55 countries, Zenith predicted 1.5% worldwide growth in 2001 versus 2000, or minus 1.5% in real terms (after allowing for inflation). Within this, the big seven markets were predicted to grow zero (minus 2% in real terms).

In its previous July report covering 55 countries, Zenith predicted 1.5% worldwide growth in 2001 versus 2000, or minus 1.5% in real terms (after allowing for inflation). Within this, the big seven markets were predicted to grow zero (minus 2% in real terms).

Although a serious recession, the media buying and planning specialist held out hopes for a return to real growth in 2002.

The company says that will not happen in the biggest advertising markets, based on data in today's quarterly update that covers the seven markets which together account for 75% of global advertising expenditure (U.S., Japan, Germany, U.K. France, Italy, and Spain).

Zenith now expects the seven markets will shrink 2.6% this year (minus 4.7% in real terms), and grow only 0.8% in 2002 (which is minus 0.8% in real terms). The researchers predict similar deterioration in many smaller countries in the worldwide December report.

In the big seven countries alone, a further $8 billion in media spending has come out of our 2001 forecast over the last quarter, which is the size of the Italian advertising market. ``Looking out to 2003, $21 billion has disappeared, equivalent to a whole Germany, the world's third largest ad market,'' the report says.

The continuing decline in corporate profitability among the world's largest advertisers is the main reason behind the current recession.

The Zenith report predicts advertising expenditure in the major media, including TV, newspapers, magazines, radio, cinema and outdoor.

Zenith's growth forecasts for 2001 vs 2000 (not adjusted for inflation) are U.S (-4.2%), France (0.8%), Germany (-4.0%), Italy (3.1%), Spain (-1.8%), U.K. (-3.0%) and Japan (1.5%).

Growth forecasts for 2002 vs 2001 (not adjusted for inflation) are U.S. (0.1%), France (3.6%), Germany (2.0%), Italy (5.2%), Spain (1.8%), U.K. (2.0%) and Japan (0.7%). Zenith Media is media buying and planning specialist with 89 offices in 45 countries in Europe, Asia, the Middle East, and the Americas. It's owned in a 50:50 joint venture by Cordiant Communications Group and Publicis Groupe.

Tags

Our typical marketing budget is usually 10 per cent of the topline spend

There are some forces impacting the way our business works. The IT/ITeS sector has changed tremendously. Platforms like Twitter have made everyone journalists. Smartphones have made everyone a photographer. The trend that we are seeing is one of hyperdigitalization, which is causing the lines between product and services to blur. For example, <a href=http://www.exchange4media.com/company/news/amaz...

The OOH sector is among the fastest growing, globally. Brands and marketers have realized its potential and impact and begun to craft medium-specific adverts. Self-regulation is not only necessary but also essential to growth of the sector. The industry needs to exercise a certain level of this self-restraint to prove its commitment to maintaining the best standards in advertising.

<b>Clients are looking for experiential solutions beyond radio or print: Abraham Thomas, Radio City 91.1 FM</b><br><br> From entering new markets to launching large format events, Radio City 91.1FM has been on a roll. The radio channel recently announced the launch of India’s biggest singing talent hunt-Radio City Super Singer Season 8. Earlier this year, the channel set up its own creative-cum...

The interesting animated rap music video encapsulates Droom’s ecosystem tools and their role in facilitating second-hand automobile transactions

Perfumes are invisible and these new ads from Skinn create a story out of this

New campaign aims at first-time users by providing ‘first-night free’ – a first-ever offering by the brand on online hotels booking