PARIS: French TV advertising spend could fall by much as 7% in the third quarter of this year, a report has shown.
In new research, investment bank Morgan Stanley noted that some TV campaigns that had previously been frozen were now being cancelled entirely, Advanced Television reports.
Separate figures from Warc's International Ad Forecast, released in June 2012, suggest that TV spending in France will rise by +0.7% in 2012.
In its report, Morgan Stanley said that a "robust" July in terms of TV spend had been followed by a “dismal” August and that cancellations starting to come through in September.
The bank added that it not optimistic about the immediate future, with advertising agencies expecting further cuts in the fourth quarter.
"Agencies are worried about the negative impact of upcoming tax increases on 2013 advertising budgets," the report added. "Tax increases will hurt the purchasing power of the French consumer as well as corporate profitability."
Data sourced from Advanced Television; additional content by Warc staff