That sucking sound of advertising dollars going away just keeps getting louder. Analysts speaking to BusinessWeek think that things are going to get a lot worse before they get better. But is this the year television advertising bites it?
Our biggest banks are going to be a little busy staying in business this year to maintain their position as the top ad spenders in the country, and the automotive and retail sectors have already sounded the alarm that their budgets will shrink as consumer spending goes down.
But will other sectors maintain their ad spend to ensure their position on the other side of the recession? It's looking unlikely. According to one ad executive:
But surely, traditionally healthy advertising sectors will help bolster flailing financial and automotive advertising numbers? Not so much.
Barclay's analyst Anthony DiClemente predicts a 5.5 percent decline in ad spending next year and says there's a "high probability" that the
"advertising malaise spreads to network TV."
Without the Olympics and the Presidential election to bolster sales next year, agencies and the networks were already predicting a rough patch for television advertising next year. But if the networks and cable companies don't get better at measuring the effectiveness of their campaigns and proving their worth to advertisers, those dollars may not be coming back when the economy recovers.
Photo: Flickr/petes_travels
