USB's Morris 'Optimistic' About Advertising Growth

Morris Says Things Are Looking Up

USB analyst MICHAEL MORRIS says retail sales growth in SEPTEMBER is the reason for his growing optimism of the U.S. advertising market, writing the "modestly better retail environment may embolden ad buyers."

THE HOLLYWOOD REPORTER reports big retailers posted sales figures for SEPTEMBER, "which rose 1.1% according to an index of key firms compiled by research firm RETAIL METRICS. MORRIS highlighted that this is the first gain in 13 months."

"Healthier retail sales will encourage retailers to increase advertising to compete for share of still shaky demand," he told THR, and he highlighted that, "according to TNS MEDIA INTELLIGENCE, retail advertising represented 14% of all U.S. ad spending in 2008."

"We expect the advertising/consumer discretionary spend relationship to return to normalized levels over the next two years and believe that consensus estimates mistakenly estimate future advertising using conservative growth rates off depressed 2009 bases," MORRIS said.

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