Sweden’s Agencies Tighten Belts

20 August 2001

Sweden’s advertising market, inflated last year by the nation’s new pension system as well as the dotcom recrudescence, is bracing itself against the deceleration in advertising expenditure.

According to CIA Worldwide in Stockholm, over seventy per cent of Swedish ad agencies anticipate a decline in ad revenues this year. “Many advertisers cut their budgets in the spring. The downturn mainly affects strategic brand advertising. There is no sign that marketing investments which were postponed in the spring will be made in the autumn instead,” warned ceo Johan Hedsio.

His gloom was echoed by Lars Sodergren, chief financial officer of Carat Sweden: “We had a substantial downturn in May, and we actually feel that the situation will stabilize in the autumn, but at a lower level than was the case in 2000.”

News source: Advertising Age - International Daily