European Ad Outlook: Big Gains Ahead: Marketers Will Spend More As Consumers Become More Affluent By Fabiana Giacomott

MILAN - European advertising spending is expected to jump 50% over the next 10 years if, accor

According to the optimistic study from the European Advertising Tripartite, a Brussels-based lobbying group, the richer a country becomes, the more marketers will spend on advertising there. Mike Waterson, the author, is convinced that the current malaise engulfing many European economies will not put a crimp in European ad spending growth.
Waterson’s study says that companies in countries like Switzerland, which has a higher per-capita gross domestic product than Japan or the U.S., will spend the most on advertising. Advertising spending in Switzerland was $1.73 billion in 1992. Conversely, in Greece, the European Economic Community’s poorest member, marketers spent only $187.5 million.
Waterson’s analysis argues that the more Greece, or for example, Portugal, take on the standards of living of the northern European neighbors, the more consumer-goods makers will sell and advertise their products in those poorer countries. This assumes that the Greeks and Portuguese will find the disposable income to buy these goods.
One trend that may already be spurring demand in poorer nations is that many manufacturers are treating Europe as a single market in their advertising schedules. The differences between the more affluent and less affluent countries, according to the study, will diminish as marketers launch and advertise products on a pan-European basis.
Fabiana Giacomotti reports on advertising for Italia Oggi.
Copyright Adweek L.P. (1993)