Forecasters temper ad spending estimates
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Three top ad forecastersGroupM, Magna Global and Zenithare tempering expectations for ad spending next year and one predicts that digital spend might finally be slowing down.
GroupM, WPP’s media investment group, is downgrading its initial 2018 growth expectations from 4.5 percent to 4.3 percent in a report to be released this week. It’s also reducing its 2019 growth projections from 3.9 percent to 3.6 percent. The media agency company says this is due, in part, to stress in the auto category and continuing softness in the consumer packaged-goods category.
Magna is forecasting that global advertising in 2019 will grow for the 10th consecutive year but says the growth rate will slow to 4.7 percent due to the absence of major cyclical events. It says global advertising revenues grew by 7.2 percent this year to reach a total of $552 billion in the 70 countries analyzed by Magna. That was buoyed, it says, by the FIFA World Cup in Russia, midterm elections in the U.S. and the Winter Olympics in South Korea, which together generated $6 billion in incremental ad spending.
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