The advertising industry looks set for its worst year since the recession of the early 1990s, as Zenith Media has downgraded its global forecasts yet again. According to a report on FT.com, the agency is now predicting a global adspend decline of 2.6%. A couple of months ago it estimated a 1.5% fall.
The US – the world’s largest ad market – is forecast to drop by 4.2% and the UK by 3.0%. The major European markets will by down 1.8% on average, says Zenith.
The report claims that low interest rates and cheap finance have so far supported consumer demand in the UK and US, but unemployment and a potential fall in house prices could well knock back consumer confidence. This, in turn, would put pressure on companies’ adspend budgets.
Analysts at ABN Amro had been predicting a global advertising growth of 1.3%, but now say they are likely to downgrade this to -1.6% within the next week.
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