Advertisers in Argentina have slashed marketing budgets, with adspend tumbling 12.2% year-on-year in the first nine months of 2001, according to the Argentine Association of Advertising Agencies.

The results reflect steep drops in ad revenue among newspapers (down 6.3%) and broadcast TV (down 14.1%), Argentina’s two largest advertising media. Although many ad dollars were shifted to less expensive outlets, there were still falls in adspend on billboards (11%), radio (1.2%), cinema (4.5%) and cable TV (36.7%).

Moreover, the Association expects continuing financial and political turmoil to depress ad expenditure further in the near future. Argentina’s economy has been depressed for four years, with no signs of imminent recovery. Although the government predicts 1.4% economic expansion next year, many economists are forecasting contraction or flat growth.

Fourth-quarter adspend is predicted to drop 16%, giving a full-year total of $2.95 billion, a fall of 13.4% from the $3.4bn in 2000 and the nation’s lowest figure since 1993.

News source: AdAge Global