Despite year-on-year growth in January and February, Asian adspend is beginning to slow, according to market research firm ACNielsen.
In China, where adspend grew an estimated 36% last year, the increase in January and February compared to the first two months of 2000 was only 20%. During the same period, Korea actually saw an 8% fall in adspend.
Even though much of this slowdown in growth can be attributed to last year’s abnormally high, dotcom-fuelled levels of marketing expenditure, analysts fear that there are signs of additional cutbacks in Asian adspend, especially among global companies like Motorola (which recently slashed $250 million from its marketing budget [WAMN:.27-Mar-01]).
“There's no doubt we're in a slowdown, although it's not as bad in Asia as in the US,” commented Publicis Worldwide regional chairman Guillaume Levy-Lambert. “But I’m not terribly worried. I’ve told our managers to look closely at costs and for signs of a slowdown.”
News source: Wall Street Journal