To: Sector Investor who wrote (27518 ) 12/11/1997 6:40:00 AM From: Glenn D. Rudolph Respond to
Global ad spend rising, but Asian rate seen slower
Reuters Story - December 11, 1997 05:32
%GB %BUS %ADV %PUB %RESF CRI.L V%REUTER P%RTR
LONDON, Dec 11 (Reuters) - Global advertising expenditure is
expected to grow until the year 2000 but the recent financial
crisis in the Asia-Pacific region is dampening growth prospects
there, media researchers said on Thursday.
"Continued real growth in advertising expenditure (is seen)
to 2000, slowing gradually as pressure is brought to bear upon
consumer expenditure in major advertising markets," Zenith
Media, a media services and research firm owned by Cordiant Plc
, said in a forecast.
"Recent blows to confidence in Asia-Pacific encourage us to
downgrade the region's medium-term prospects," Zenith said.
"Nevertheless, emerging markets in Asia-Pacific, as well as
in Latin America, should continue to enjoy the most rapid
growth."
Zenith forecast global advertising spending in television,
radio, print, cinema and outdoors would grow by 6.8 percent in
current prices to reach $298.78 billion in 1997.
Real growth is expected to decline gradually to two percent
in 2000, with total advertising spending forecast at $357.51
billion in 2000, Zenith said.
The recent banking and currency crisis in Asia-Pacific was
expected to hurt consumer confidence more than economic
fundamentals.
Zenith said it downgraded its growth forecast for the region
and was now expecting Asia-Pacific to account for 25 percent of
global advertising expenditure in 1999, down from its previously
forecast 27 percent share.
"Despite its woes, we expect Asia-Pacific to remain the
fastest growing media market of the big three, with 5.3 percent
expansion at constant prices forecast for 1997, slowing to three
percent in 1999," Zenith said.
Japan is seen accounting for 57 percent of Asia Pacific's
advertising expenditure in 1997, Zenith said.
North America remains the world's largest advertising
market, with the United States accounting for 96 percent of the
region's advertising expenditure in 1996.
Total North American advertising spending was forecast at
$111.64 billion in 1997, growing to $128.25 billion in 2000,
Zenith said.
Advertising expenditure in Europe was estimated at $84.11
billion in 1997, rising to $97.70 billion in 2000.
