European advertising spend this year is not likely to follow the rising curve of the US industry, warns Saatchi/Cordiant-owned media planning and buying shop Zenith Media. Indeed, the European growth rate is set to slump from last year's 8.5% to 7.8%, reducing to 6.3% by 2002.
Total European adspend this year is forecast to hit $86,984 million, rising at a decelerated rate to $98,649 million by 2002.
In the USA, however, "towering consumer confidence" drove adspend up by 8% in 1999 - its highest level since 1988. Zenith believes this will rise by a further 8.1% this year, falling back to 6% growth in 2001.
Both in Europe and the US, TV is the main driving force behind advertising growth, although radio is another major factor in Europe thanks to improved research and more efficient selling.
Predicts Adam Smith, Zenith’s head of knowledge management: "While the fastest-growing markets are expected to slow down through to 2002, the laggards should speed up, so the outlook is benign for all."
The global trend is also upward, forecast to rise from last year’s 6.5% to 7.8% this year.
News Source: CampaignLive (UK)