According to a report in today’s Wall Street Journal, positive signs are emerging for the ad industry with two Wall Street analysts reporting a likely upturn in the market.
“We believe the US advertising recession is at its end,” said Leland Westerfield, media analyst at
UBS Warburg in New York. “The cyclical recovery appears to be under way sooner than anticipated.” Westerfield cited data from media buyers and sellers indicating that marketers in many categories “are willing to spend more.”
Analysis of this data has led Westerfield to change his forecast for ad spending in 2002. He now forecasts an increase of 1% for the year compared to previous estimates of -2%. His forecast for 2003 currently remains unchanged despite calling for a gain of 4% in 2002.
Jason Helfstein writing for CIBC World Markets in New York has reported “an improving advertising environment” whilst recommendind stocks in the radio and outdoor market to investors. “Radio as an industry is well positioned to benefit from a cyclical recovery,” he said.
