Warc delivers gloomy adspend forecast
|01 Aug 2011 12:40 BST||Back|
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Prospects worsen for the international ad market as Warc cuts its predictions for growth in 2011 to 3.2%.
The International Advertising Forecast measures adspend in 12 major global markets. The previous Warc forecast, published in March 2011, predicted growth of 4.6% for the year as a whole.
Marketers are expected to cut their budgets for the rest of 2011 following unsettled conditions in the global economy. This includes debt disputes on both sides of the Atlantic, unrest in the Middle East, the Japanese earthquake and high commodity prices.
Japan looks set to be the worst performing market, with adspend falling by 3.5% as consumers and businesses continue to be affected by the earthquake and nuclear emergency.
Suzy Young, Warc’s data editor, said: “Global economic conditions remain unsettled and this is making marketers cautious, particularly in Western Europe, Japan and the US.”
Emerging markets will grow faster than Western economies – Russia will see adspend grow by 19.5%, India by 15.5% and China by 12.2%.
Taking out inflationary influences, the growth rates are still healthy – 9.6%, 6.9% and 6.5% respectively.
Globally, Warc predicts a recovery in adspend next year, with the annual growth rate reaching 5.7% in 2012.
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