You are here: Home » Reuters » News
Business Standard

Global advertising expenditure to grow by 4.1 percent in 2018 - Zenith

Reuters 

By Noor Zainab Hussain

(Reuters) - Leading forecaster Zenith lowered its prediction for global expenditure growth in 2018 to 4.1 percent to reach $578 billion by the end of the year, with marginal downgrades in North America, Western and Pacific.

Zenith, owned by France's Publicis, had a 2018 growth rate of 4.2 percent in September. It had also estimated 4 percent growth in 2017, down from 4.8 percent in 2016.

"We expect expenditure to grow more slowly than the as a whole out to 2020," Zenith said.

However, a boost of 4.1 percent would still be welcome for global giants such as WPP, which cut its sales expectations for the third time this year in October, with weak client spending and technological disruption putting it on course for its lowest growth since the financial crisis.

This bleak outlook from the world's largest company followed similar forecasts from peers Publicis and Interpublic.

Zenith said that growth in North American spending is being lifted by Canada's buoyant economy and is outpacing growth in Western and Central

expenditure was to grow by 3.4 percent in North America in 2018, down from the 3.6 percent growth it for 2017.

Zenith also lowered its for Western and Central to 1.7 percent this year from 3.9 percent last year, hit by a slowdown in Britain.

Political and economic uncertainty over Brexit have contributed to a sharp slowdown in British spending, which Zenith expects to grow by only 0.7 percent this year, down from 9.6 percent in 2016.

Zenith reiterated that the United States, the world's largest economy, would be the leading contributor of $72 billion in spending to the global market between 2017-2020, with China ranked second.

Separately, WPP's GroupM said it expects global spending growth of 3.1 percent this year and 4.3 percent in 2018, helped in part by events such as the football World Cup. (http://prn.to/2BEWFyi)

(Reporting by Noor Zainab Hussain in Bengaluru; Editing by David Goodman)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, December 04 2017. 16:11 IST
RECOMMENDED FOR YOU