Zenith predicts slower growth in European adspend

- Growth in advertising spend in Europe is expected to drop to 7.8 per cent this year in the wake of increased spending in the US market, according to forecasts by Zenith Media. Zenith estimates growth in European advertising spend will drop further to 6.3 per cent by 2002 when total spend will be $98,649 compared with $86,984m in 2000. The drop follows an acceleration in the growth of spend to 8.5 per cent in 1999 when a total of $80,705m was spent on major media including TV, press, radio, cinema and outdoor. This contrasts with expansion in the US market, which Zenith attributes to "towering consumer confidence", where advertising spend showed its highest growth since 1988 to 8.0 per cent in 1999. Zenith predicts further growth of 8.1 per cent in 2000, followed by 6.0 per cent in 2001. TV is the main driver of adspend growth in both Europe and the US and Zenith expects this to continue. But radio is the other fast-growing medium in Europe, benefiting from improved research and more efficient selling. Although the UK has had a good early 2000 and should accelerate to 7 per cent growth this year, Zenith warns it is likely to slow to 4 per cent by 2002. Notable weakspots in Europe were Denmark, which grew just 0.9 per cent in 1999, and Sweden, with just 1.9 per cent growth. However, Zenith predicts that this weakness should slow down in 2002. Adam Smith, head of knowledge management at Zenith, said: "While the fastest-growing markets are expected to slow down through to 2002, the laggards should speed up, so the outlook is benign for all." Meanwhile, Zenith gave revised its estimate for global advertising spend upwards to predict a rise from 6.5 per cent to 7.8 per cent growth for this year.

- Growth in advertising spend in Europe is expected to drop to 7.8 per cent this year in the wake of increased spending in the US market, according to forecasts by Zenith Media. Zenith estimates growth in European advertising spend will drop further to 6.3 per cent by 2002 when total spend will be $98,649 compared with $86,984m in 2000. The drop follows an acceleration in the growth of spend to 8.5 per cent in 1999 when a total of $80,705m was spent on major media including TV, press, radio, cinema and outdoor. This contrasts with expansion in the US market, which Zenith attributes to "towering consumer confidence", where advertising spend showed its highest growth since 1988 to 8.0 per cent in 1999. Zenith predicts further growth of 8.1 per cent in 2000, followed by 6.0 per cent in 2001. TV is the main driver of adspend growth in both Europe and the US and Zenith expects this to continue. But radio is the other fast-growing medium in Europe, benefiting from improved research and more efficient selling. Although the UK has had a good early 2000 and should accelerate to 7 per cent growth this year, Zenith warns it is likely to slow to 4 per cent by 2002. Notable weakspots in Europe were Denmark, which grew just 0.9 per cent in 1999, and Sweden, with just 1.9 per cent growth. However, Zenith predicts that this weakness should slow down in 2002. Adam Smith, head of knowledge management at Zenith, said: "While the fastest-growing markets are expected to slow down through to 2002, the laggards should speed up, so the outlook is benign for all." Meanwhile, Zenith gave revised its estimate for global advertising spend upwards to predict a rise from 6.5 per cent to 7.8 per cent growth for this year.



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