2010 ad spending outlook brightens, no thanks to the U.S.

June 24, 2009

If you think the advertising market is bad in the United States right now, just wait until next year.

In a new report, GroupM, the media arm of ad holding company WPP, predicts that advertising expenditures in the United States will drop by 4.3 percent this year, then drop by 6.5 percent in 2010.

“We expect a bottoming out on local media spend in 2009 with more stability into 2010. However, we are expecting further contraction on national media, particularly television, as clients adjust budgets to reflect a continued pessimistic consumer spending forecast.” GroupM Chief Investment Officer Rino Scanzoni in New York said in a statement.

But wait! The report isn’t all bad news. GroupM figures that worldwide spending will drop 5.5 percent this year, but only 1.4 percent in 2010, largely thanks to the BRIC nations of Brazil, Russia, India, and China.

“China’s economic stimulus has already bolstered confidence, and the demand for advertising in Russia will recover quickly if $70-a-barrel oil prices are here to stay,” said GroupM Futures Director Adam Smith. “Brazil and Indonesia remain among the top growth contributors, and India is predicted to come back strongly after pausing in 2009.”

He added, “Our global forecast for 2009 has finally stopped tumbling. The 15 countries still reporting positive ad growth in 2009 has become 33 in 2010, and the number could rise as we phase through the year.”

(Photo: Reuters)

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This is something we have to get used to, its not the old world economies anymore but the Bric countries that will become the new leaders of the pac.

Posted by Nikkei 225 | Report as abusive