Zenith Media is expected to release a report today warning that the recent decline in the dotcom sector will lead to a slowdown in advertising growth during 2001. Global advertising growth will fall to 6% next year as adspend by internet companies is slashed.
A year ago Zenith predicted growth in worldwide ad expenditure to remain above 6% for the next three years, with a 6.5% increase in adspend expected during 2000. This year’s growth is expected to reach 7.9%, according to the Financial Times, with around a third of all European adspend during 2000 coming from dotcom companies.
In 2001, however, advertising expenditure will take a downward turn, as the slump of the dotcom sector and the expectation of slower ecomonic growth take their toll on the market. The US will be the hardest hit, with just 4.6% growth expected during 2001 compared to 8.1% for this year, while European ad expenditure will fall to 6.7% from 8.6% during 2000.
Zenith is expected to pinpoint television channels, poster advertising and local radio as the media most likely to suffer as a result of fall-out within the sector. In May this year 9.4% of poster ad revenue came from dotcom companies, but this figure had fallen to 4.8% by September.
