Study Says Media To Take $1.13B Hit From Katrina
November 16, 2005 at 11:00 AM (PT)
A study by PQ MEDIA says that HURRICANE KATRINA will cut total media spending by $1.13 billion between AUGUST 2005 and SEPTEMBER 2006, with 64.8% of the loss coming from the NEW ORLEANS market ($732.5 million, representing a 14.3% drop in spending there). The losses represent only a 0.2% decline in expected total media spending in the next year ($887.37 billion). The hit taken by the media from KATRINA will exceed that from HURRICANE ANDREW in 1992, the report says.
Combined with the five other storms that hit the U.S. in 2005- RITA, WILMA, DENNIS, OPHELIA, and CINDY- the media spending decline rises to $1.59 billion.
Local advertising is projected by PQ to take the biggest hit, $470.3 million (29.7%); radio is expected to lose $66 million in billing from the storms.