New York: Global advertising spending in measured media is expected to drop 0.2% to $458 billion in 2009 compared to the previous year when spending was up 2.6%, according to a new study from GroupM.
The projected decline is the first retreat in global advertising since the 3% fall recorded in 2001 after 2000’s extraordinary, dotcom-driven ad growth of 15%.
The report also predicted that ad spending in the US will fall 3% to $157 billion in 2009 following a 0.3% increase to $162 billion in 2008.
The study, “This Year, Next Year” is part of GroupM’s media and marketing forecasting series drawn from data supplied by holding company WPP’s worldwide resources in advertising, public relations, market research, and specialist communications.
Highlights of the study were presented on Tuesday at the UBS Media Conference in New York by GroupM Futures Director Adam Smith, who oversees all of GroupM’s “This Year, Next Year” reports.
“Advertisers are scrutinizing every penny,” said Smith. “The automotive and financial services categories have obviously seen weakness across 2008, and retail will be under pressure as we move beyond its busiest fourth-quarter into 2009. Among our own client base we are not seeing wholesale cancellations, but we are seeing migration from expensive and less-tried-and-true media to value and certainty,” he said
Worldwide, Internet ad growth is predicted to slow from 22% in 2008 to 10% in 2009, representing $5 billion growth to reach $59 billion or 13% of measured media investment.