January 2000


Plain
ADVERTISING SPENDING INCREASES GLOBALLY


  • World News Today... daily headlines and abstracts
  • Advertising Spending Increases Globally
  • P&G Consolidates Media Account
  • New Recycling Law in Japan Effects Importers
  • Tap Water Competes for Bottled Water Customers in France
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  • WORLDWIDE -- According to Zenith Media Worldwide forecasts, advertising spending is expected to continue increasing around the world at a rate of about 6% in 2001. The strongest growth is expected in Latin America (to increase by 7.8%), followed by Europe (6.1%), North America (6%), and Asia Pacific (5.6%) regions. Overall growth was up by 4.9% in 1999 and increases of 6.4% are expected this year (2000).

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    P&G CONSOLIDATES MEDIA ACCOUNT

    HONG KONG -- Proctor & Gamble Company's business in China is considered the largest single media account in Asia, excluding accounts in Japan. So their decision to consolidate their media business has had a tremendous impact on Zenith. P&G's media business accounted for between 30 - 60% (depending on sources) of Zenith's Chinese billings. P&G is moving its US$150 million media business in China to Quest.

    Quest is a joint venture between Leo Burnett Company's Starcom and MacManus Group's MediaVest. The Quest acquisition followed several Starcom wins of P&G business over the last year in other regions of the world, including Chile, Korea, the UK and USA.

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    NEW RECYCLING LAW IN JAPAN EFFECTS IMPORTERS

    TOKYO, Japan -- Japan's new recycling law requires that importers and manufacturers of appliances provide for the collection and recycling of used products. This will have subsequent impact on costs of goods in Japan.

    The law specifically says that at least 50% of the products (by weight), items such as refrigerators, air conditioners, washing machines and televisions be recycled. This law goes into effect April 2001.

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    TAP WATER COMPETES FOR BOTTLED WATER CUSTOMERS IN FRANCE

    PARIS, France -- Vivendi, a French conglomerate recently opened a US$165 million French waterworks plant near Paris. This facility uses the same technology that bottled water and soft drinks companies use. But instead, they produce tap-delivered water. Vivendi's effort to capture the bottled water market is supported by SEDIF, the regional water authority.

    Per capita consumtion of bottled water in France is about 125 liters/year. Key reasons for drinking bottled vs. tap water include safety/health reasons and taste. Danone and Nestle are currently introducing new lines (i.e calcium-enriched bottled water, among others) into France and throughout Europe this year.

    Can France's US$2.5 billion bottled water market be captured by a tap-water competitor?
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