Carat has lowered its forecasts for global advertising expenditure in 2008 and 2009. Its worldwide prediction for 2008 has been reduced by 1.1% to 4.9% growth, fuelled by downward ad spend in the UK, the US, Spain and China.
The agency has also reduced its prediction for 2009 from 4.9% growth to 4.8%. It predicts that the majority of developed economies will contribute less than 5% growth, although double digit growth will come from emerging economies in Central and Eastern Europe, Central Asia and Latin America.
In 2008, Carat says Russia will deliver the highest growth at 22.8%. China and Central Europe are set to contribute 18.2% and 16.8% increases.
Aegis Media chief executive Jerry Buhlmann says: “It’s clear that the worldwide economic issues affecting businesses are having an impact on where and how advertisers spend their money. It is also significant that the US and the UK, as the highest spenders on advertising in their regions, are showing reductions in our forecasts.”
He adds that while TV’s share of spend has stabilised, internet advertising is continuing to drive spending ahead of other sectors in “nearly every region”.