Local Ad Spending Down 20% in 2009; Emerging Media Up 5.0%

Media revenues generated through advertising are being forecast to decline 12 percent in 2009 following a 42 percent decline in 2008 and compounded by an additional projected 40 to 70 percent decline in 2010 amp8211 more than a 20 percent decline over three years These new Myers forecasts are based on a composite overview of industry analysts new data on fourth and first quarter ad spending the latest GDP figures and an indepth analysis of the top 100 advertisers and top ten ad categories conducted by investment firm Goldman Sachs The data suggests media and other advertisingdependent companies need to brace for challenging times ahead and accelerate initiatives to attract revenues from alternative sources The full revised Jack Myers Media Business Report Advertising and Marketing Investment Forecast is available at httpwwwjackmyerscomcommentarymediaspendingforecastscn Registration required The media that are least impacted by the continuing downturn in ad support are network television videogame advertising cinema advertising online and mobile although forecasts even in these categories are far less positive than believed even a few months ago This is the first time Myers has recalibrated forecasts this early in the year Lower fourth quarter 2008 spending has also pushed full year 2008 results further into the red than originally estimated Myers is currently projecting an industry turnaround in 2011 but success will be on a companybycompany and marketbymarket basis within most traditional media categories and will depend on companies39 strategic responses to current industry conditionsMedia company advertising revenues peaked at 2347 billion in 2007 a year in which the industry grew 36 percent Total ad spending is projected to decline to only 1877 billion in 2010 Not only is the three year period between 2008 and 2010 the first time advertising has declined in three consecutive years but it also represents the first time total marketing communication investments are decliningMarketing spend including 18 media categories plus direct marketing consumer and trade sales promotion event marketing public relations and ancillary marketing declined 17 percent in 2008 and is forecast by Myers to decline 64 percent in 2009 and another 52 percent in 2010Local media are in a virtual free fall with consecutive year spending declines of 32 113 210 and 75 beginning in 2007 Newspapers local television and radio and yellow pages advertising will decline from 115 billion in 2006 to a projected 728 billion in 2010 Newspapers alone account for a 216 billion loss of revenues with the industry losing more than 50 of its annual income from advertisingGrowth categories include branded entertainment videogame advertising online video and mobile are forecast to increase only 50 in 2009 and 73 in 2010 following a 203 growth rate in 2008 and 380 growth in 2007 Online display advertising is forecast to decline 20 in 2009 and 30 in 2010Click here for your printfriendly PDF

CLICK TO DOWNLOAD THE MYERS REPORT RESEARCH & WHITEPAPERS

Local Ad Spending Down 20% in 2009; Emerging Media Up 5.0%

Author

Publish date

Channel

Jack Myers

Hispanic Leadership Roundtable: Inclusion, Mentorship, and Building the Next Generation (Video) - By Juan Ayala

More Videos:

CLICK TO DOWNLOAD THE MYERS REPORT RESEARCH & WHITEPAPERS

Local Ad Spending Down 20% in 2009; Emerging Media Up 5.0%

Enjoying This Commentary? There's More to Love

Jack Myers

Hispanic Leadership Roundtable: Inclusion, Mentorship, and Building the Next Generation (Video) - By Juan Ayala

The payment was successful

Cookies