A survey from ZenithOptimedia forecasts that global advertising expenditure will slump to 4.3% from the 6.6% growth that was predicted in June. The local retail sector will continue to invest in tactical advertising campaigns, but long-term planning and expenditure will suffer.
On a global scale, luxury goods, travel and entertainment categories will come under pressure as consumers tighten their belts, according to the report. Despite heavy spending on traditional media, online advertising will grow by 23% per annum between 2007 and 2010, increasing its share of the global ad market from 8.6% to 13.8% in the same period.
In the UK, marketing budgets have suffered their biggest cuts in eight years, according to the IPA’s Bellwether Report, which shows 35% of companies have revised their budgets downwards. A report from IAB in the UK reports that internet advertising should remain strong, with a 21% increase in internet advertising in first half 2008 over the previous year globally.
In Australia, almost all major media stocks have halved in value since the market hit a record high in November last year, according to recent reports in The Australian newspaper.
Australian media companies are being adversely affected by the health of their major advertisers, including retailers, banks, governments and multinationals, according to reports. However, many economists expect Australia will avoid a recession in spite of rising unemployment figures.