European marketers slash ad budget in light of economic downturn and turn to the internet.
QUI MEDIA — July 24th, 2008 — European marketers turn to the internet.
The New York Times report ZenithOptimedia, a buying agency part of Publicis Groupe, has recently revised forecasted ad spend for Western Europe, projecting growth in line with inflation rates of 3.7%. This is bad news for publishers who will bare the brunt of these cut-backs, positioned at the end of the value chain.
Analysts indicate that new media, often dubbed a nonessential, experimental platform, is better positioned to ride the spend reduction storm in Western Europe than traditional media. A highly measurable medium, online offers advertisers directly proportional value for spend, with measurable ROI. Such a concurrence of advantages is drawing ad spend from print and broadcast media even while spend is cut across platforms.
31 January 2008 Bizcommunity reported ‘08 would be a tough year for US traditional media while internet ad spend would continue grow by 16.5%. These forecasts are proving correct and are evidently spilling over to the European market. 2008 has been labelled the year of the internet, an insight that may yet be realised.
The questions that remain involve ad spend trends in South Africa and the value that will be placed on the internet as a reliable medium in a young market.
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