Majority Of Media Executives Expect Ad Recovery In Q3 2002
The majority of senior media executives in the US believe that advertising expenditure will begin to recover in the third quarter of this year, according to a survey conducted by AdMedia Partners in December and released this month.
Mergers and acquisitions to rebound The majority of respondents expect the media M&A marketplace will improve over last year. “Given the high hopes for ad spending, it’s not surprising that 57% of respondents believe that M&A activity among traditional media companies will increase over the sluggish pace set in 2001, while only 18% expect it to decrease further,” says AdMedia.
Capital to dry up? “Respondents who are knowledgeable about the financial markets know that there is plenty of private equity money seeking bargains, but good merchandise is not necessarily available, and those seeking debt financing will have a hard time finding it on attractive terms.
“In fact, most respondents foresee an even bleaker lending picture for the year ahead than in 2001. More than half predict commercial banks will lend less, and nearly two-thirds expect them to tighten their criteria still further for cash flow-based lending.”
The survey contacted executives from across the US whose companies operate in a variety of media ÂÂ- many in more than one. Forty-five percent (45%) of respondents operate in newspapers; 44% in interactive media; 39% in business-to-business publications; 36% in exhibitions/trade shows; 30% in information publishing; 26% in consumer magazines; 19% in professional publications, 18% in books; and 17% in broadcast, including radio and television.
AdMedia conducted a similar survey amongst the advertising and marketing industry, the details of which can be found AdMedia Discovers Optimism Amongst Ad Execs.