Small '03 Recovery Forecast for European Ad SpendingAdvertisers are expected to increase spending in Europe by 1.7 percent this year to $163 billion, a slight uptick after dropping for two years, a study said yesterday. Spending on direct marketing and other non-media promotions is to rise 2.1 percent.
According to Reuters, Ad Barometer said its recovery forecast was based on economic fundamentals, but that with political and economic uncertainties an upturn would not happen immediately. The study, which covers seven European countries, is published twice a year.
"Advertisers should increase their promotional spending in Europe by 1.7 percent from 2002, but this is a rate slightly below economic growth of 3 percent in current value," Ad Barometer said.
Advertisers spent $160 billion in the seven countries last year, down 1 percent from the year before, but this followed a 6.2 percent drop in 2001.
The study predicts that Britain will be the most buoyant market in Europe with a 2.3 percent rise in media campaign spending, followed by France at 1.6 percent. Ad Barometer covers Britain, France, Germany, Italy, Poland, Spain and Sweden.