China holds up as global markets tumble

Hong Kong - Media buying group Carat predicts negative growth in almost every major advertising market in 2009 and 2010, with the exception of China.

Carat's prediction for worldwide expenditure for 2009 is a fall of -5.8%, with a small return to growth of 0.7% for 2010. 

The agency's 2009 forecast declines are led by negative growth in almost every major advertising market, with the exception of China.

Carat said China's 19% growth in 2008 will slow to 4.6% this year and rebound in 2010 to 7.2%.

Strong spending from Chinese consumers and Western advertisers continued spending would help to fuel growth. 

The Asia Pacific region as a whole is tipped to drop -0.8% this year, but rebound to 4.3% in 2010.

Patrick Stahle, chairman & CEO Aegis Media Asia Pacific, admitted that Carat's predictions were gloomier than others, but said the market was heading into turbulent times.

But he stressed that the gloom was not all bad for the marketing business. 

Marketers, he said, were now starting to make major leaps in digital advertising, with many now more willing to take the plunge into digital.

He said media owners are more willing to test new media solutions. 

"We're seeing more branded content opportunities and partnerships with the media, which is a positive thing. There are some big changes going on," he said.