Zenith Cuts Ad Forecasts Again
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.
| Zenith Media Advertising Growth Forecasts 2001 | |||
| Previous | New | % Point Change | |
| Global | -1.5 | -2.6 | -1.1 |
| US | 0.9 | -4.2 | -5.1 |
| UK | -0.5 | -3.0 | -2.5 |
| Major European average | – | -1.8 | – |
| Source: Zenith Media, August 2001 | |||
