Showing increasing optimism about the US ad sector’s outlook for 2002, analysts at an American Association of Advertising Agencies media conference predicted a robust rise in adspend for the coming twelve months.
American advertising revenues could increase by 2% to 3% over the year, predicted Jonathan Jacoby, managing director of Sun Trust Bank.
“We are more optimistic than others,” he declared. “March is looking good. A number of big automakers are doing promotional deals. Political spending in the second part of the year will also help.”
A little less positively, Lanny Baker, Jacoby’s counterpart at Smith Salomon Barney, expects a 1.9% rise in the US market and a 0.6% fall globally.
Both forecasts, however, are ahead of many recent projections, which have been more cautious about growth prospects. Research group CMR last month predicted only a 1.5% increase for the year [WAMN: 29-Jan-02].
The improved expectations follow upbeat news about the economy in general, and in particular the recent decline in inventories [WAMN: 11-Feb-02], thought to herald imminent growth.
“We could see a 3% to 4% growth rate [in the economy],” declared panel host Ron Insana, an anchor at TV network CNBC, who added that the cheap money policy from the Federal Reserve may also encourage marketers to increase spending again.
Data sourced from: AdAge.com; additional content by WARC staff