US advertising spending is expected to drop by 5% in 2009, according to Steve Lanzano, chief operating officer of MPG North America.
Lanzano said that local advertising such as radio, television, newspapers and traditional billboards would suffer most as companies cut spending.
Lanzano told the Reuters Media Summit in New York: “I think the real key for next year is going to be the second and third quarter. I think if the economy continues to go south, you’re going to see some real hits across all media in the second and third quarter of next year.”
Lanzano said that while every category of media will be hit by shrinking corporate marketing budgets, cable networks and web search are likely to outperform other areas next year.
The economic downturn is destined to hurt all corners of the television business, said Lanzano. Fourth-quarter spot ad prices are now down about 4% from a year ago, he added.
Towards the end of October, UBS media analyst Michael Morris forecast that US advertising spending would reach $172 billion in 2009, down from $183 billion in 2008 (see US Adspend To Reach $172bn In 2009).
Overall, said Morris, TV ad spending would drop 8% to $44 billion from 2008, with local TV stations in particular getting the brunt of the drop – down 12% to $26 billion.
Related Links
