Global advertising expenditure will continue to grow in real terms
to the year 2000, although advertising’s share of total economic output
is forecast to decline gradually, according to Zenith Media’s bi-annual
advertising expenditure estimate.
By 2000, global adspend will stand at dollars 357.5 billion, up from
just under dollars 299 billion this year.
Europe’s share of expenditure will fall from 28.2 per cent in 1997 to
27.3 per cent in 2000. The US will also experience a decline from 37.4
per cent in 1997 to just under 36 per cent in three years’ time. Higher
inflation rates in Europe mean real growth will be slower than in the
US.
The financial crisis that hit Southern Asia earlier this year will delay
the region’s race to catch up with Europe. Zenith predicts that although
Asia is set to remain the fastest growing advertising region, it will
still account for only a quarter of global advertising by 2000, as
opposed to original predictions of 27 per cent.
Zenith predicts cable TV will witness a double-digit percentage
growth.
TV will be the only sector to increase its share of adspend - by just
under two percentage points to 40.8 per cent globally and from just
under 32 per cent to 35 per cent in Europe in 2000. Radio, cinema and
outdoor advertising’s share of adspend will remain static while adspend
in print will decline.
John Perriss, chairman of Zenith Media Worldwide, said: ’Advertising
remains a vibrant industry with real growth prospects.’
