Carat: Global Advertising Down 9.8%, U.S. Down 16.3%
October 2, 2009 at 6:02 AM (PT)
AEGIS GROUP PLC's media agency CARAT has cut its forecast for global advertising spending for 2009, reports THE WALL STREET JOURNAL, but offered a glimmer of hope -- saying it expects the industry to return to slight growth next year. In MARCH, CARAT had predicted a 5.8% drop -- and has revised that to 9.8%.
It's a tougher story in the U.S., with CARAT expecting a drop of 16.3% in 2009, and a recovery in the second half of 2010.
"These significant revisions aren't unexpected in the context of the recent volatility of the market, and represent a cautious attitude towards adspend (advertising spending) this year, most significantly in the U.S. and EUROPE," wrote AEGIS MEDIA CEO JERRY BUHLMANN.
While radio is expected to fare better than newspapers or TV, CARAT says online advertising should be the only area in media to grow this year.