Europe Set For Sustainable Ad Growth

A report by Zenith Media forecasts that there will be sustainable growth in ad expenditure in the US and Europe, an improved adspend recovery in Japan and a “temporary cooling” in Southeast Asia and Latin America.

Global adspend in print, TV, radio, cinema and out-of-home is forecast to be US$ 291 billion in 1996, 7.8% ahead of 1995 in current prices. Zenith also forecasts that 1996 will be the high point of real growth to 1999. Spend in the Asia/Pacific region is set to overtake Europe in 1998.

The report says that despite rigid fiscal policy in much of Europe in the run-up to monetary union, economic growth should continue at sustainable long-term rates of around 2%, which regional adspend is expected to track or slightly exceed. It is believed that the 1997 settlement of the terms of monetary union should remove uncertainty and liberate some demand. Europe’s adspend to GDP ratio is low and holding at 0.86%. This is because a lot of TV is still off-limits to advertisers and what is available is often expensive. European TV gets 30% of traditional media budgets compared to nearer 40% in Asia and the US.

Zenith Media: 0171 255 1221