NEW YORK: Advertising expenditure in the US will decline by 15.4% this year, to $162.1 billion (€109.3bn; £102.0bn), before returning to growth of 0.2% in 2010, according to a new forecast by Magna, part of Interpublic Group.
via www.warc.com
It's not that this is really even news. Anyone who works in the business--client side or agency side--knows that the declines in spending have been dramatic.
The media most deeply affected by this downturn are what you would expect--newspapers, television, magazines, and outdoor--all "traditional" media that each face their own wrenching problems apart from the economic crisis.
Direct media are not so badly affected, though according to the Magna report, even national digital will drop 9.8% in 2009. The expectation--and it's only an expectation, I don't think you can take these forecasts seriously at all--is that national digital will resume an upward climb in 2010 and average 5.3% annually through 2014. I always find this sort of projections ridiculous and wonder what they are based on. It's like me projecting the number of wins my beloved St. Louis Cardinals will have in the 2013 season (I'm thinking 97, sounds reasonable, doesn't it?).
A full economic recovery is a long way off. Thanks to our reckless banks, we have essentially ruined two industries--housing and automobiles. Finance is pretty much ruined, too, but the banks have the money so they can at least keeping paying themselves. But none of these industries are driving demand for advertising services. That will be a long way off.
More importantly, massive changes in communication processes are underway. Whole media paradigms are challenged. No one knows where all this heads, or how to "monetize" the "new media" effectively.
Fortunately, the nature of business is that it's a game that never ends. We just have to come into work everyday--and thank our lucky stars if we have work--and try our best.
I would like weeping using the smile as opposed to repenting using the cry,when my center is broken ,is it required to fix?
Posted by: Nike Shox Turbo | November 02, 2010 at 08:50 PM