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GroupM forecasts global ad spending to fall 5.5% in 2009, 1.5% in 2010

24 June, 2009

Report Predicts Modest Recovery Will Begin in 2010

Global advertising spending in measured media is expected to drop 5.5 percent to $417
billion in 2009 with a mild recovery expected in 2010 when the decline should ease to 1.4
percent or $411 billion, according to the latest 70-country forecast report from GroupM.
The so-called BRIC nations (Brazil, Russia, India and China) are expected to lead the
recovery while ad spending in the U.S. and the G7 nations (Canada, France, Germany, Italy,
Japan, the United Kingdom, and the United States) will probably lag behind, according to the

The study, “This Year, Next Year” is part of GroupM's media and marketing forecasting
series drawn from data supplied by parent company WPP's worldwide resources in
advertising, public relations, market research, and specialist communications. It was
released today by GroupM Futures Director Adam Smith in London and GroupM Chief
Investment Officer Rino Scanzoni in New York.

“China's economic stimulus has already bolstered confidence, and the demand for
advertising in Russia will recover quickly if $70-a-barrel oil prices are here to stay,” said
Smith. “Brazil and Indonesia remain among the top growth contributors, and India is
predicted to come back strongly after pausing in 2009."

Advertising expenditures in the United States are expected to fall 4.3 percent this year
followed by an anticipated 6.5 percent drop in 2010, according to the report. Those figures
compare to an average 6.4 percent decline in 2009 followed by a 5.5 percent drop in 2010 in
the G7 nations (Canada, France, Germany, Italy, Japan, the United Kingdom, and the United

But Smith stressed that global prospects for a limited ad recovery in 2010 are improving.
“Advertising lagged economic recovery for about 18 months after the recession of 1992 and
about 12 months after the one in 2001,” he said. “Our global forecast for 2009 has finally
stopped tumbling. The 15 countries still reporting positive ad growth in 2009 has become 33
in 2010, and the number could rise as we phase through the year.”

In the U.S., Scanzoni said U.S. ad spending should stabilize this year and next, but will still
be down. "We expect a bottoming out on local media spend in 2009 with more stability into
2010,” he said. “However, we are expecting further contraction on national media
particularly television as clients adjust budgets to reflect a continued pessimistic consumer
spending forecast"

The report also revealed that packaged goods marketers contributed significantly to
sustaining advertising during the recession, while auto and financial retreated furthest. This
resulted in television and out-of-home adding global ad investment share, and newspapers
continuing to shed almost one share point about annually. Despite broadband saturation and
advertising cutbacks in many developed economies, digital media continued to display
growth, rising from 10 percent of global ad investment in 2007 to a predicted 15 percent in

The full “This Year, Next Year” worldwide report, which contains forecast figures for 70
nations worldwide, is now available. For copies, please notify the media contacts listed

GroupM is the leading global media investment management operation. It serves as the parent company to WPP media agencies including MAXUS, MediaCom, Mediaedge:cia and Mindshare. Our primary purpose is to maximize the performance of WPP’s media communications agencies on behalf of our clients, our shareholders and our people by operating as a parent and collaborator in performance-enhancing activities such as trading, content creation, sports, digital, finance, proprietary tool development and other business-critical capabilities. The agencies that comprise GroupM are all global operations in their own right with leading market positions. The focus of GroupM is the intelligent application of physical and intellectual scale to benefit trading, innovation, and new communication services, to bring competitive advantage to our clients and our companies.

Adam Smith
Office: 44 (0)20 79 69 40 83

John Wolfe
Office: 212-297-7160 / Cell: 914-659-8663

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