The global advertising market will grow between 0 and 1 per cent this year, thanks to events such as the South Africa, 2010 FIFA World Cup, experts forecast. The growth will help stabilise the world advertising market that has been battered by the global recession.
Renowned international marketing groups are now turning their hope on events in developing countries to improve revenue defects brought by a tumbling financial year. The Wire and Plastic Products, WPP, the world largest communications group with offices in 107 countries, says advertising market is now showing ‘signs of stabilisation’.
Sir Martin Sorrell, the WPP boss hinted that signs of stabilisation could be linked to big events like the World Cup, the Shangai Expo and the US mid-term elections and this he said, has raised hopes of a “stable year”.
He said: “Things are less worse than they were. Most people are now saying the global advertising market is going to grow between 0 and 1 per cent.”
The company whose profits fell by 11 per cent in 2009 after been knocked down by the economic downturn now has its sight on 2010 where predictable 12.7 per cent earnings will be registered.
The World Cup has already been forecasted to generate an estimated 12.7 Billion Rand in South Africa alone and as the tournament approaches advertisement around the world increase, and experts say it would help various economies.
However, while the WPP boss expects growth to lag in the US and Western Europe, he is sure of a strong performance in Africa, Asia, Central Europe, Latin America and the Middle East. The advertising giant is already focusing its attention in Africa with offices in Johannesburg, Cape Town and Nairobi and believes it is time to take Africa seriously as the market is enticing.
The World Plastic Products is based in the UK and has the largest communications service (worldwide) in revenue with 2,000 offices and about 140,000 employees world-wide.