MEXICAN AD BIZ MAY TAKE 20% HIT IN '95

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MIAMI-Fallout from peso devaluation and rising paper costs could send the Mexican ad industry into a two-year tailspin, warns a leading adman from that country.

Luis Carlos Mendiola Codina, founder of Grupo PMP, Mexico City, and president of the International Advertising Association, said 1995 ad spending is projected to fall to 1992 levels, or $1.5 billion. That would be a drop of more than 20% from last year's $1.9 billion. Meanwhile, inflation is expected to soar to 25% this year, from 5% in '94.

Mr. Mendiola Codina spoke to IAA members last week at the studios of Telemundo and TeleNoticias, the 24-hour, Spanish-language news channel.

Paper costs have risen 40% in recent months, he noted, causing a stagnation in ad placements.

Mr. Mendiola Condina said: "The growth that had been foreseen will most likely now take another two years to sow again."

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