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."