The Wall Street Journal this morning reports that Zenith Media is preparing to announce further cuts to its global ad spend forecasts today.
Following last week’s reports that Zenith is predicting a 0.8% drop in adspend for the year (see
Forecasts), the WSJ today reports that on the release of its quarterly figures, Zenith will announce that growth in the global market is to decline by 1.4%.
The US market is now forecast to decline by 5.1%, a huge drop on the previous estimate of -0.1% growth and European ad spend growth is now predicted at +1.4% against previous expectations of +3.6%.
“We are hearing the same story from all over: economic growth cooled markedly in the last quarter of 2000 and advertising budgets fell heavily in the first quarter of 2001,” said John Perriss, worldwide Chairman and CEO of Zenith Media. “They certainly had to slow down: global advertising expenditure grew by an astonishing and quite unsustainable 10.8% in 2000, assisted by the short-lived dot-com jet stream, causing media price inflation to break out anew.”
Ad Revenue Growth Forecasts From Zenith
| |
Previous |
New |
| UK |
3.6% |
-0.8% |
| Europe |
3.6% |
1.4% |
| US |
-0.1% |
-5.1% |
| Global |
|
-1.4% |
UK Ad Spend Totals From Zenith
| |
All Ad Revenue (£m) |
Yr-on-Yr Growth |
| 1999 |
9,529 |
|
| 2000 |
10,485 |
10.0% |
| 2001 |
10,402 |
-0.8% |
| 2002 |
10,783 |
3.7% |
| 2003 |
11,218 |
4.0% |
| 2004 |
11,604 |
3.4% |
| 2005 |
11,987 |
3.3% |
| 2006 |
12,377 |
3.3% |
Source: Zenith Media, June 2001.
