Aegis sees global rise in ad spending

MEDIA and marketing group Aegis today added its voice to the growing volume of companies forecasting a significant upturn in advertising spending this year.

The group expects worldwide advertising spending to rise by 4.7% during 2004, boosted by the Athens Olympics and the US Presidential elections. That compares with growth of 3.2% in 2003 as the industry began its slow ascent out of its worst recession for years.

Ahead of full-year figures in March, Aegis said that trading in 2003 was in line with market expectations and up on the previous year. It added that good cash management and lower interest rates meant interest paid last year was less than analysts had forecast.

The strongest growth in advertising spend in the coming year is expected to be in the Asia-Pacific region with an upturn of 6% compared with 4.2% last year.

The US market will grow by 4.7%, up from 3.4%, while Europe will prove the laggard with ad spend up by 3.6% but that is a big improvement on last year's 1.7%.

Aegis said its main media agency, which trades under the Carat brand, was growing well in North America, where the Bush campaign has brought in $120m (£67m), and Asia-Pacific and is even matching budgeted targets in the softer European market.

Market research division Synovate had a solid 2003 after two tough years. Both divisions are benefiting from an increasingly global view on advertising and research taken by its main multinational clients.