The advertising industry in the US is beginning to move again following a ‘general paralysis’ immediately before and during the initial stages of the war in Iraq, according to analysts at Merrill Lynch.
The broker says that this paralysis has now begun to dissipate, although caution over the state of the broader economy is still holding back any real growth in advertising. Advertisers have so far postponed, rather than cancelled their campaigns.
“In discussions with the agencies, we can confirm there is pent up demand. Our overall sense is that ad trends will resume the muted recovery that began earlier this year beginning in the third quarter,” says Lauren Rich Fine, one of Merrill’s principal advertising analysts.
Jack Myers last week quoted JP Morgan analyst, Spencer Wang, as saying that the US adspend downturn is now starting to recovery after reaching a nadir (see US Ad Market Is Recovering, Says Analyst).
