Aegis forecasts growth in global adspend

by Jeremy Lee, Campaign 09-Sep-05

Aegis predicts global advertising spend will grow by 5.2 per cent and has announced an increase in revenue and profits in its interim report.

This growth will come primarily from Asia, where the thriving economies
are driving global adspend. At the current rate, Aegis predicts the
region will overtake Europe in spend terms by 2008.

The company described the picture in Europe as more "subdued" although

advertising expenditure remained strong in the Nordic and Central
European regions.

Aegis has revised down its growth predictions for European advertising
spend this year - from 4.6 per cent to 4.2 per cent - and estimated that
UK expenditure would grow by 4.5 per cent next year.

This compares with expected growth rates in China of 18 per cent this
year and 20 per cent for 2006.

Next year, Aegis believes that the Football World Cup in Germany and, to
a lesser extent, the Winter Olympics in Italy will lift advertising
spend and the company is predicting a global growth rate of 5.8 per
cent.

Aegis claims the shift away from traditional broadcast media towards
digital media is well under way. The company believes it is well placed
to benefit from this trend, given the investment it has made in its
digital network, Isobar. Isobar accounts for almost 13 per cent of
Aegis' media revenues during the period.

Robert Lerwill, the chief executive of Aegis, said: "The group performed
well, producing good growth in both revenue and profit."