MAM
Carat slashes forecast for US ad spend growth in 2005
MUMBAI: With rising oil prices, the dollar downslide and the US current account deficit being potential causes for concern in 2005, media buyer Carat, a unit of UK-based Aegis has sliced its 2005 global advertising spend forecast.
The growth predictions cited for 2005 by Carat has dipped from 4.8 per cent in September to 4.5 per cent in 2005 and the global ad spending to increase by 4.9 percent, compared with the five per cent increase its forecast stated in September.
The agency has said that despite the fact that the world was experiencing a significant recovery in advertising spending and a continued belief of advertising budgets being on the rise in the US, this action was necessary. This move has simply reiterated the concern marketing executives bear today with the recent economic health of the US.
UK FORECASTS REVISED UPWARDS
Interestingly, Carat cut its US ad spends forecast to 4.5 from 4.8 per cent although it has increased UK’s projected growth to 4.6 per cent from 4.3 per cent due to increased British marketing budgets.
According to agency reports, UK marketing budgets have been revised in the third quarter for the fourth consecutive quarter and this has led Aegis to forecast growth of 6.4 per cent in 2004, compared with previous expectations of 4.6 per cent.
The US advertising sector space although has witnessed the economic scenario heading towards the slowing of growth and fewer job gains. Also, US corporate profits have seen a slight slump in the third quarter which has led to the decline in consumer confidence in the last quarter of 2004.
Another factor in consideration are quadrennial events like the Olympics and the US elections which surged spending by about 6 per cent. 2005 is expected to record a drop in spends across most markets.
ZenithOptimedia and Universal McCann as recently as last month have on the other hand raised their figures of ad spends forecasts this year.
2004 saw Carat in Europe exceed the expected growth levels from 4.4 per cent to 4.8 per cent. It put growth in the UK at 6.4 per cent, up from 4.6 per cent.
Carat has although maintained its 2005 forecast for Europe at 4.4 per cent. But raised its forecasts for Spain from 4.2 per cent to 4.5 per cent and for France from 1.9 per cent to 2.2 per cent.
Coming to the Asia-Pacific region, advertising spends here are expected to grow by 5.8 per cent compared with 6.2 per cent in 2004. Another pint in note being that advertisers are beginning to respond to the fragmentation of television audiences by allocating more funds to the Internet and in non-traditional media.
Carat forecast Internet advertising spend to go up by 20 per cent in 2005 which currently stands at three per cent. The outdoor market was another area pointed out by the agency that would be a strong medium in the years to come which will then evolve to the growth of in-store digital delivery.
AD Agencies
WPP and Ogilvy top the global charts as India joins the creative elite: Warc rankings
A record five-year streak for Ogilvy while India secures a top five global spot
MUMBAI: The global advertising world has a familiar king, but a new powerhouse is gatecrashing the palace. In the latest Warc Creative 100 rankings, the industry’s definitive audit of excellence, WPP has once again been crowned the top holding company. Not to be outdone, its crown jewel, Ogilvy, has secured the top network spot for a staggering fifth consecutive year.
It is a “five-peat” that proves Ogilvy’s creative engine is not just running but purring. While many networks rely on one or two superstar offices to carry the load, Ogilvy’s dominance is a team effort across the globe. Hot on their heels is sister agency VML, which took the silver medal for networks, ensuring a WPP clean sweep at the very top of the podium.
The biggest noise, however, is coming from the East. India has officially vaulted into the top five most creative nations on Earth. Once viewed primarily as a back-office for production, the country is now a front-row leader in imagination. Driven by the brilliance of agencies like Ogilvy Mumbai and Leo Burnett India, the nation is proving that its work does more than just look good on a trophy shelf. In a market where every rupee must work twice as hard, Indian campaigns are blending high-concept artistry with ruthless commercial effectiveness.
The individual accolades saw Heineken toast to success as the top brand, finally knocking Apple off its perch. Unilever remains the world’s most awarded advertiser, proving that big business can still have a big heart through its work for Dove and Vaseline.
The title of the world’s most creative campaign went to Publicis Conseil Paris for their AXA “Three Words” initiative. By subtly adding “and domestic violence” to insurance policies to provide immediate relocation cover, the agency proved that the best advertising doesn’t just sell a service, it provides one.
The 2026 rankings also signal a shift in the industry’s DNA. The era of boring business-to-business marketing is dead, with B2B campaigns cracking the top ten for the first time. Meanwhile, artificial intelligence has moved past the gimmick stage. The winners this year used tech not for the sake of a trend, but to drive genuine human emotion.
Whether it is Paris providing a safety net for the vulnerable or India redefining the global creative order, the message from this year’s Warc rankings is clear. The best work in the world is no longer just about catching the eye, it is about changing the world.
