Finland’s advertising sector forecasts strong growth

Growth expectations by marketing communications companies have been revised upwards several times this year.

The advertising sector in Finland is expecting a busy time for the rest this year and looking forward to good prospects in 2011, according to a new survey by the Finnish Association of Marketing Communication Agencies (MTL). The sales margin in the sector is forecast to grow by 10.2% in 2010. According to Anne Mehtäläinen, MTL’s CEO,76 % of the respondents to the survey expect the economic situation to improve in the near future and only 2% expect it to deteriorate.

Growth expectations in the sector have clearly been rising. During the first quarter of the year the advertising companies forecast 5.6% growth, increasing to 6.2% in the second quarter. Now their forecast for 2011 is 7.3%. MTL’s membership includes more than 100 agencies, representing approx 50% of the industry volume, and includes all major traditional and other agencies.

Jussi Liimatainen, MTL’s chairman of the board, notes that MTL’s business barometer has been good at predicting the future, including the recession which was clearly visible in early 2008. He believes that the sector has survived the recession relatively well, with very few companies going out of business. New players in the market have benefited from the situation, while the larger agencies have had a more difficult time, according to Liimatainen.

Source: Markkinointi&Mainonta