Despite growing confidence in broadcasting circles, the weakness of the local advertising market is mitigating against accelerated growth in the sector as a whole, according to analysis from the US.
Merrill Lynch concurs with other organisations which are eulogising national advertising in the second half of 2003 (see
Nielsen Confirms Upturn In TV Adspend). In the upfront market, broadcast and cable networks “generally enjoyed mid-teens pricing/CPM growth and high-teens total dollar growth”. This has raised hopes that 2004 will be a better year for the TV industry.
The prognosis for local advertising is not so positive and as a result of heavy political spending last year, television and radio face difficult comparisons.
Radio has been hit by a downturn in spending from travel, telecoms and financial advertisers but there are signs of recovery with total revenues up by 3% in July (see US Radio Advertising Rises 3% In July). Further growth is expected as the economy and the financial market picks up.
With the presidential election and the Olympics falling in the same year, TV and radio bosses have every right to be confident going into 2004.
