Local advertising in the US slowed in April with newspaper and radio revenue results not performing as well as the previous month but this isn’t something to make too much of, says Merrill Lynch, as the outlook for the summer months remains positive.
Merrill Lynch thinks that the drop in newspaper revenues during April was due to pre-Easter advertising falling in to March. Revenues produced by situations vacant accelerated during April but was offset by a decline in classifieds and real estate advertising spend.
During quarter one of 2004, internet advertising finally realised the potential the market had prematurely anticipated three years ago, when spending reached an all time peak.
Looking forward, Merrill Lynch remains positive that the Presidential elections and Olympics will help boost TV station revenues throughout the summer, with advertising agencies reporting the TV upfront market as being their current focus.
In Europe, advertising trends haven’t yet had the positive turnaround experienced in the US. In the UK, TV advertising trends were up less than 4% in quarter one but appear to be picking up a bit in quarter two, says Merrill Lynch. TV revenues in France performed slightly better, reaching a mid single digit rate but have slowed modestly in April and in Germany, this was up over 7% but again has flattened in April. In quarter one, Italy experienced the greatest growth, with TV revenues up 10%.
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