Media spend fall sparks fears of a new slowdown

Agencies are worried that a dip in media spend by clients in the fourth quarter of this year may be the first indication of a new economic slowdown.

ITV’s revenue growth slowed during October to four per cent year on year (MW October 6), compared with nearer nine per cent in the summer. November’s revenues are expected to fall by 5.5 per cent while December is expected to be down five per cent.

The decline has spread to outdoor, where one national contractor is estimating that revenues will fall by as much as ten per cent year on year in November and December.

“Broadly, as a sector, media has slowed down,” says Christine Walker, chief executive of Zenith Media, the UK’s largest media buying agency. “It is not simply a reaction to media inflation earlier in the year, it is more sinister. Things are slowing down more than is being owned up to.”

Many top ten agencies agree, and cite clients who are cutting budgets in order to support profits weakened by a lack of consumer demand. Retail sales for the third quarter of 1995 increased by only 0.3 per cent by volume – an increase mainly accounted for by high street discounting.

Media owners in radio and cinema, where it is harder for agencies to estimate demand, claim to be unaffected.

Colour advertising in the national press has remained buoyant, but growth in the medium as a whole for the fourth quarter is slower than earlier in the year because of a lack of tactical mono advertising.

Latest from Marketing Week

NOT REGISTERED? IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now

THE BEST CONTENT

Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

If you are looking for our Jobs site, please click here