At the end of last week Zenith Media made further downgrades to its global advertising forecasts, cutting 2001 growth from -1.5% to -2.6% (see Zenith Cuts Ad Forecasts Again). UK estimates were reduced from -0.5% to -0.3%.
News of a change in Zenith’s advertising forecasts tends to send ripples throughout the industry and today stock in media companies Granada and Carlton Communications were down in the morning’s trading. As groups such as these are very reliant on advertising volumes, such growth estimate cuts negatively impact on the ratings of the companies. Deutsche Bank and Merrill Lynch have both cut their estimates for the two ITV giants.
Analysts at ABN Amro, meanwhile, are currently revising their forecasts for this year and the next and further downgrades are certainly on the cards. UK growth has already been put back further from -3.7% to -5.4%.
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