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Global adspend to fall 5.8%, says Carat
Date: 26/03/2009
Carat, the media agency network owned by Aegis, predicts global adspend will decrease by 5.8% this year and improve by 0.7% in 2010, with the US and Spain set to experience the most severe revenue declines in 2009.
At current prices, Carat says global adspend rose by 1.0% in 2008, having predicted it would expand by 4.9% as late as August last year, and the company has also scrapped its forecast of an increase in worldwide advertising expenditure of 4.8% in 2009.
It suggests that the US will see revenues decline by some 9.8% in this year, compared with the positive growth rate of 3.1% it estimated late last year, and endure a further slide of 2.7% in 2010.
Western Europe will also follow up a 2.9% fall in revenues in 2008 with a 6.6% dip this year, and growth of 0.1% next year. In the UK, the ad market shrank by 5.5% in 2008, and it will experience a contraction of 7.1% this year, and an uplift of 2.0% in 2010. Germany will post declines of 2.2% and 1.1% this year and next, while France will see adspend tumble by 5% in 2009, and marginal growth in 2010. Spanish revenues however, will decline by 16.5% this year, and by a further 4% in 2010, while Central and Eastern Europe will post successive annual reductions in spending of 8.2% and 1.0%.
Russia will also see a downturn of 8.2% in 2009 - compared with Carat's previous prediction of an expansion of 19.5% - and a 1.5% drop in 2010.
Asia Pacific revenues will also fall by 0.8% this year, before a 4.3% upturn in 2010. The Chinese ad market grew by 18.9% last year, a figure that will slow to 4.6% in 2009, and then rise to a total of 7.2% next year. Japan, on the other hand, will see a 5.5% decrease this year, and a negligible improvement in 2010, while Australia will see figures fall 1.9% in 2009, before registering growth of 1.8% the following year.
Source: Carat; additional content by WARC.com
WFA collates data on global ad spend and media trends to help members understand market conditions and communications investment around the world. For more information please contact [email protected]
