The advertising outlook for 1997 looks brighter than when the year started, said McCann-Erickson Worldwide forecaster Robert J Coen. He now expects ad expenditures for the year to climb 6.2% over 1996 levels to $186 billion. His initial 1997 forecast, issued last December, called for 5.6% growth this year. Stronger than expected economic growth has helped advertising expenditures rise faster than initial projection, said Mr. Coen, a McCann senior VP. He spoke at Interpublic Group of Cos.' semi-annual outlook conference.
Strong ad spending will continue into 1998 as ad spending continues to outpace economic growth, said Mr. Coen. He forecast 1998 spending will rise 5.6% in the U.S. to $196.5 billion and 6.6% overseas to $240.5 billion, for a global growth rate of 6.2% and total expenditures of $437 billion. However, 1998 could also surprise the industry with higher numbers thanks to the winter Olympics and a postal rate increase expected in mid-1998.
Copyright June 1997, Crain Communications Inc.