Havas predicts upturn in marketing spend next year

LONDON - Expenditure on marketing and communications is set to rise 4.4% across the major markets in Europe, boosted by a jump in interactive advertising, according to the latest study by Havas in conjunction with the London Business School.

Interactive advertising is set to rocket 14.2%, while traditional advertising will be up 4.2% as the medium witnesses the beginning of a recovery after three years of recession.

The strongest growth is expected in China and Brazil, and a moderate rise in spending in Germany and France.

The study, which monitors expenditure across a wide range of marketing activity including direct mail and event marketing, said spend on marketing services is set to rise 4.6%.

The survey found that spending on traditional advertising would grow 4.2% globally, in line with other recent reports including ZenithOptimedia, owned by Havas rival Publicis Groupe, which said that adspend will rise by 4.7% globally in 2004, although it revealed that Europe will lag behind the rest of the world in experiencing a recovery.

The media-buying agency, part of Publicis Groupe, is predicting that adspend in Europe will rise by only 3.7%, compared with 5% in the US and 5.1% in Asia Pacific. In the UK, ZenithOptimedia is predicting growth of 3.2% next year, compared with only 1.1% this year.

The Havas survey questioned 772 decision makers in the US, Germany, Britain, France, Brazil and China.

Last month Havas reported it had stemmed losses over the past quarter with revenues down by 5.5%, the smallest percentage fall it has seen this year.

Alain de Pouzilhac, chairman and CEO, said: "The third quarter has seen the initial implementation of Havas' strategic reorganisation plan, the goal of which is to revitalise our revenues and profits from 2004."

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