Zenith: recession gets worse

IPC was publicly damned today by the former editor of Uploaded, the online version of lads mag Loaded, for axing the site.

The advertising recession is far worse than predicted according to Zenith Media. In its latest forecast report on world advertising expenditure Zenith has again revised its predictions downward saying that spend will fall 2.6% or 4.7% in real terms for the rest of the years, compared to a 1.5% fall in its July report.

If correct, the slump in advertising activity is the worst since the recession of the early 1990's.

Zenith predicts that another £8bn in revenue has out of the main markets around the world including the US, UK, France, Germany, Japan Italy and Spain since its last quarterly report.

Next year Zenith is predicting that growth will be as low as 0.8%, which equates to minus 0.8% when inflation is accounted for, which will crush any hopes for an early recovery.

This year, spend in the UK is predicted to fall 3%, with the US hardest hit being down 4.2%. Across Europe, spend is expected to be down 1.8%.

The report said: "The causes for the 2001 advertising recession are already known, but more acute. The continuing decline in corporate profitability among the world's largest advertisers is the main reason. The dotcom bubble bursting was the other, though this is now working its way out of the year-on-year numbers. The advertising slowdown began with globalised packaged-goods manufacturers, so the onset was sudden, worldwide, and affected television the most. But now we see it spreading to most other product categories, advertisers, and media."

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