MAM

Carat slashes forecast for US ad spend growth in 2005

MUMBAI: With rising oil prices, the dollar downslide and the US current account deficit being potential causes for concern in 2005, media buyer Carat, a unit of UK-based Aegis has sliced its 2005 global advertising spend forecast.

The growth predictions cited for 2005 by Carat has dipped from 4.8 per cent in September to 4.5 per cent in 2005 and the global ad spending to increase by 4.9 percent, compared with the five per cent increase its forecast stated in September.

 

 

The agency has said that despite the fact that the world was experiencing a significant recovery in advertising spending and a continued belief of advertising budgets being on the rise in the US, this action was necessary. This move has simply reiterated the concern marketing executives bear today with the recent economic health of the US.

UK FORECASTS REVISED UPWARDS

Interestingly, Carat cut its US ad spends forecast to 4.5 from 4.8 per cent although it has increased UK's projected growth to 4.6 per cent from 4.3 per cent due to increased British marketing budgets.

According to agency reports, UK marketing budgets have been revised in the third quarter for the fourth consecutive quarter and this has led Aegis to forecast growth of 6.4 per cent in 2004, compared with previous expectations of 4.6 per cent.

The US advertising sector space although has witnessed the economic scenario heading towards the slowing of growth and fewer job gains. Also, US corporate profits have seen a slight slump in the third quarter which has led to the decline in consumer confidence in the last quarter of 2004.

Another factor in consideration are quadrennial events like the Olympics and the US elections which surged spending by about 6 per cent. 2005 is expected to record a drop in spends across most markets.

ZenithOptimedia and Universal McCann as recently as last month have on the other hand raised their figures of ad spends forecasts this year.

 

 

2004 saw Carat in Europe exceed the expected growth levels from 4.4 per cent to 4.8 per cent. It put growth in the UK at 6.4 per cent, up from 4.6 per cent.

Carat has although maintained its 2005 forecast for Europe at 4.4 per cent. But raised its forecasts for Spain from 4.2 per cent to 4.5 per cent and for France from 1.9 per cent to 2.2 per cent.

Coming to the Asia-Pacific region, advertising spends here are expected to grow by 5.8 per cent compared with 6.2 per cent in 2004. Another pint in note being that advertisers are beginning to respond to the fragmentation of television audiences by allocating more funds to the Internet and in non-traditional media.

 

 

Carat forecast Internet advertising spend to go up by 20 per cent in 2005 which currently stands at three per cent. The outdoor market was another area pointed out by the agency that would be a strong medium in the years to come which will then evolve to the growth of in-store digital delivery.

Latest Reads

https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/10/28/img_28102021_135107_800_x_800_pixel.jpg?itok=FjYFemD3
My11Circle onboards Mohammed Siraj as brand ambassador

Mumbai: My11Circle, the fantasy cricket platform of Games24x7 has announced cricketer Mohammed Siraj as its new brand ambassador. Siraj, who plays for the Indian team and represents Royal Challengers Bangalore in the Indian Premier League (IPL) is recognised as one of the upcoming stars and best...

MAM Marketing Brands
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/10/28/img_28102021_133553_800_x_800_pixel.jpg?itok=GIejwvB8
PhonePe’s new campaign showcases the ease of buying insurance

Mumbai: Digital payments company PhonePe has announced its latest brand campaign “Tension chhodo, Insurance lo” to make customers aware of how insurance can make life easy by staying prepared for unforeseen circumstances. The campaign launched during the ongoing T20 World Cup highlights how the...

MAM Media and Advertising Ad Campaigns
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/10/28/img_28102021_131650_800_x_800_pixel.jpg?itok=Mzu786Vh
Onsurity appoints Samar Kagalwalla as head of marketing

Mumbai: Onsurity, the tech-enabled employee healthcare platform has appointed Samar Kagalwalla as head of marketing & growth. Kagalwalla joins the platform with over 15 years of marketing experience. In his new role, he will be responsible for strengthening the brand's communication in the...

MAM Media and Advertising People
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/10/28/img_28102021_131222_800_x_800_pixel.jpg?itok=9Dyic5pq
Maulik Kalamthekar to lead consumer engagement strategy for WolfzHowl

Mumbai: Brand strategy consultancy Wolfzhowl Strategic Instigation has brought on board Maulik Kalamthekar as the lead of consumer engagement strategy. This is Maulik’s second stint at the behaviour change strategy firm.

MAM Media and Advertising People
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/10/28/img_28102021_125340_800_x_800_pixel.jpg?itok=8m3o7YmM
Shilpa Shetty comes on-board as the face of Godrej Nupur

Mumbai: Godrej Nupur, the henna brand from Godrej Consumer Products Ltd (GCPL), has appointed Bollywood actor Shilpa Shetty as the brand ambassador for its henna-based hair colour. Shetty will drive the penetration of the brand’s mehendi-based powder hair colour across urban and rural markets. The...

MAM Media and Advertising Ad Campaigns
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/10/28/img_28102021_113610_800_x_800_pixel.jpg?itok=Jzk9hJyO
Bajaj Finance releases Diwali Campaign ‘EMI hai na’

Mumbai: With the festive season transpiring in full swing, Bajaj Finance in collaboration with Bajaj Finserv Direct Ltd has launched its Diwali campaign ‘EMI hai na’ to offer discounts and cashback on a wide range of products and brands purchased on EMI through the Bajaj Finserv EMI Store of Bajaj...

MAM Marketing MAM
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/10/28/img_28102021_111001_800_x_800_pixel.jpg?itok=zCSGTwbV
The Trade Desk partners with Lifesight to help brands optimise digital campaigns

MUMBAI: Global advertising technology firm The Trade Desk has partnered with Lifesight, a customer intelligence company that specialises in location-based measurement. The association will enable the tech firm to provide insights to marketers in India regarding the impact of their online...

MAM Marketing MAM
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/10/28/spotify-new.jpg?itok=FsZrY30b
Spotify pushes the cart on the omnishopper's retail journey

Mumbai: It’s never been a better time to be a shopper, given today's buy-anywhere retail environment. It's raining deals at stores, on social media, and inside in the comfort of the couch at your fingertips. Mobile commerce is expected to make up 83 per cent of all e-commerce sales by 2024, and 8...

MAM Marketing Brands
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/10/27/img_27102021_162426_800_x_800_pixel.jpg?itok=14ATG4mK
Amitabh Bachchan named brand ambassador for Amway India and Nutrilite

Mumbai: Amway India has announced the appointment of Bollywood actor Amitabh Bachchan as its brand ambassador. The veteran actor will endorse the brand Amway and the Nutrilite range of products across all platforms, encourage women and youth empowerment through guided entrepreneurship thereby...

MAM Marketing MAM

Sign up for our Newsletter

subscribe for latest stories

* indicates required