Which is hardly surprising but also all the more reason to hope that US president Barack Obama and his allies (just about everyone outside Europe) can knock some sense into austerity junkies Germany’s Angela Merkel and even the UK’s David Cameron at the current G20 summit in Mexico.
Media agency ZenithOptimedia has cut its closely-watched forecast for global ad spending by 0.5 per cent to 4.3 per cent this year, thanks largely to slumping adspends in Spain, Portugal and Greece (where it’s in danger of disappearing completely) and a general slowdown in Europe. Spain is forecast to fall 12 per cent this year, Greece nearly 20 per cent.
The report blames the slowdown in Europe on a ‘flight to safety,’ with advertisers concentrating their spend on emerging markets. But money kept back from European markets is being kept in company coffers, not re-deployed to the rest of the world.
It remains optimistic about the rest of the world however, forecasting that Indonesia will shortly overtake India and Brazil will surpass the UK to become the fifth-biggest ad market worldwide.
The fear for Western-based agencies and the big marcoms companies must be that 2012, with the Olympics, the Euros and a US presidential election (all of which boost spending) will be followed by 2013 which doesn’t have any of them.