Media investment firm GroupM said China’s slowing growth and higher interest rates are bringing down ad budgets. And a potential trade war is having a particular impact on the automotive industry, which is traditionally among the largest advertisers.
Concern about the global economy has made its way to advertising budgets.
According to a new report from WPP’s GroupM, global ad spending will increase 3.6 percent, or by $19 billion, in 2019 which is lower than the company’s 3.9 percent projection from earlier this year. Growth in 2018 is also weaker than expected, rising 4.3 percent, down from a prior estimate of 4.5 percent.
Higher interest rates and China’s slowing growth are among the factors that Group M, the world’s largest media investment company, cited for lowering its projections.
