News & Events

Ad growth 'downgraded amid economic fears'

Date posted:

10th July 2008

Economic fears and declines in spending power mean advertising growth will be slower this year, a new report suggests.

Predictions for growth in global marketing have been downgraded this year amid growing fears over the world economy.

In a forecast by Universal McCann's Insider's Report, growth has been revised to 4.4 per cent, down from 4.6 per cent in December last year.

The report's author said shrinking disposable incomes as a result of higher living costs in most industrialised countries were responsible for the drop.

"The advertising industry is presently in a severe slump," said Bob Coen, pointing out that while there will be an upturn in the future, "not much improvement is likely until 2010".

But while advertising growth in countries such as the United States and the United Kingdom is expected to remain "modest", emerging economies such as China, India, Russia and Brazil will shore up growth overall.

Meanwhile figures from the Interactive Advertising Bureau Europe show that online advertising continues to grow apace, with an average global growth rate of 40 per cent in 2007 compares to the previous year.

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