Coen sees 6.2% ad growth in '98

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Growth in advertising expenditures will keep ahead of overall economic growth even as the economy slows down in 1998, according to Robert Coen, senior VP-director of forecasting at McCann-Erickson Worldwide, New York. Mr. Coen said he expects expansion of the U.S. gross domestic product to slow to a 2.5% annual rate in 1998 from 3.7% in 1997, while total U.S. advertising expenditures will rise 6.2% to $198.4 billion in 1998. Expenditures in national media will rise 6.3% to $116.9 billion in 1998.

A still-strong economy, low unemployment and continuing consumer confidence are all helping the ad industry, said Mr. Coen, speaking at the annual Paine Webber Media Conference. Expenditures among the top seven marketer categories were up 7.3% in the first eight months of 1997 compared to the same time in 1996, he said. Also, the secondary categories are still spending more overall, thanks to double-digit increases in spending among the computer and resorts/tours segments, making up for double-digit drops in categories such as insurance companies and airlines.

Copyright December 1997, Crain Communications Inc.

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