London -- Worldwide advertising spending should grow by 3.9
percent this year in inflation-adjusted terms, driven by strong consumption and economic
growth in the United States and Europe, media-services agency Zenith Media said in its
semiannual ad-expenditure forecast, released last week.
Global ad spending should reach $303.8 billion this year,
up from $291.5 billion last year. Adjusted for inflation, the growth rate comes out to 3.9
Growth should continue in 2000 at 3.3 percent and in 2001
at 3.1 percent, Zenith forecast. The report tracks spending on print, TV, radio, cinema
and outdoor advertising.
Separately, Zenith forecast global Internet display
advertising to reach $3.4 billion this year and to surge to $5.4 billion in 2000 and $8.1
billion in 2001.
In North America, ad spending should grow by 4.4 percent
this year to $129.8 billion, reaching $145 billion by the end of 2001.
European ad spending is seen rising 4.3 percent this year
to $88.7 billion, reaching almost $99 billion in two years.
Growth should return to Asia, where ad spending fell 5.7
percent last year amid a battered economy. Zenith forecast advertising spending there to
grow 2.4 percent in 1999 to $56.9 billion.
However, advertising spending in Latin America should be
little changed at about $22.3 billion, as the region grapples with recession and the
devaluation of Brazil's currency earlier this year.