Adspend growth forecast cut as economy doubts grow
Predicted 4.6% growth in international adspend this year has been slashed to 3.2% at current prices by the marketing intelligence service (Warc), amidst increasing uncertainty over the global economy.
This effectively equates to a decrease of 0.1% year on year once high inflation is taken into account, a factor which has weighed on sentiment heavily alongside debt fears in Europe and the US.
Suzy Young, data editor, Warcsaid: “Global economic conditions remain unsettled and this is making marketers cautious, particularly in Western Europe, Japan and the US.
“As a consequence marketing budgets for 2011 are likely to be smaller than initially hoped. The next three months will be crucial.”
A partial recovery is still anticipated for 2012 with a rebound predicted to see a growth rate of 5.7% at current prices, chiefly on the back of double digits growth in eastern economies such as Russia, India and China.