Analysts Issue Darker Ad Spending Projections
March 11, 2009 at 5:15 AM (PT)
The latest JACK MYERS MEDIA BUSINESS REPORT predicts that advertising in the U.S. will decline for three straight years. MYERS' analysis predicts that last year's 4.2% drop will be followed by a 12% decline this year and an about 7% fall next year to about $187.7 billion, off from 2007's peak of $234.7 billion.
Terrestrial radio is among the leading decliners in MYERS' estimates, along with newspapers and local and regional cable TV; local media is projected to fall 20% this year. MYERS sees revenues increasing for satellite radio, online, and in the video game and theater categories. The figures are based on Gross Domestic Product figures, spending data, and a GOLDMAN SACHS study of leading advertisers.
Meanwhile, INTERPUBLIC's latest forecast for ad spending projects U.S. ad spending to fall by up to 20%, a far darker outlook than the agency's annual outlook released by BOB COEN in DECEMBER, when he predicted a 4.5% decline in American ad spending.