Global ad spend will not suffer a “severe” slowdown in 2008 despite the credit crunch and growing economic uncertainty, according to research from media agency Carat.
The Aegis-owned agency has revised its 2008 global forecasts marginally downwards to 6% growth, from the 6.2% forecast in September last year. Its forecast for the UK has been revised upwards, with 6.4% growth, from the 5.9% predicted in September. UK ad spend is expected to grow a further 6.3% in 2009, ahead of the 4.9% global average.
Aegis Media chief executive Mainardo de Nardis says one-off events including the Beijing Oympics and the US Presidential elections will drive strong global growth in ad spend for 2008, up from 4.6% in 2007. He adds: “Overall, our forecasts for 2009 are more conservative than those for 2008, but we do not foresee a severe slowdown in global spend as a result of the last six months’ financial uncertainty.”
The fastest growing regions in 2009 are expected to be Asia Pasific and Latin America, with strong increases predicted for India, Indonesia and Argentia, at 21.2%, 22.3% and 15% respectively.
The strongest growth remains in the digital segment, at 23.3% for 2008, although it is expected to slow to 18% in 2009. Cinema, outdoor and TV advertising are also expected to grow, with only newspapers declining overall.