The fortunes of corporate Britain could be about to change for the better, according to the latest adspend assessment from WPP Group’s media network MindShare.
Adding its trickle to the recent spate of adspend soothsaying, MindShare foresees an overall increase of 2.4% in UK advertising revenues during 2003 despite fears that the consumer spending boom is about to go into reverse.
Says managing partner Simon Duckworth: “'We have reached the turning point and business investment is the key.”
Observes the study: “Over the last few years, financial retrenchment has prevented companies taking advantage of the consumer boom. But as business investment conditions are improving, the consumer boom is possibly coming to an end. Over the next couple of years, the underlying impact of the economy on advertising is likely to be positive.”
MindShare says cinema will be on the receiving end of the biggest adspend increase, 3.8% up year-on-year; while TV and press expenditure will respectively rise 2.8% and 1.9%.
But in other sectors the days of wine and roses are not expected to return through 2003. Information technology, telecoms and online advertising are predicted to reduce their aggregated adspend by 5%; and in terms of market confidence, MindShare moves into Cassandra mode.
“'The bad news for finance is the lack of news,” envisages the report, “with the FTSE [Financial Times Stock Exchange index] likely to remain low, interest rates in a trough and the mortgage market approaching an end”.
Data sourced from: MediaGuardian.co.uk; additional content by WARC staff