Ad Industry's Bleak Outlook

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The top US advertisers cut their ad spending last year for only the fourth time since 1956.  Ad Age's Data Center Analysis shows that the top 100 advertisers, as a group, spent 2.7% less on ads than the previous year.  This year, not surprisingly, looks worse:

The overall picture for this year is shaping up to be more grim: Measured media spending for the top 100 advertisers tumbled 8.1% in the first quarter, according to TNS.

Moreover, Publicis Groupe's ZenithOptimedia forecasts an 8.7% decline in U.S. media spending in 2009 and 1.7% drop next year, with a tepid recovery -- 1.1% growth -- in 2011. It predicts U.S. spending declines of 5.1% in 2009 and 1.4% in 2010 and then growth of 2.4% in 2011 when it combines media spending and unmeasured disciplines.

Last year's ad-spending drop may seem relatively mild. But full-year figures smooth out the stunning declines that came after financial markets imploded last fall.

Brad Johnson, Ad Age's director of data analytics explains the report here:

You can read the full Ad Age report here.


Posted 06-23-2009 8:09 AM by Graham Griffith
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