1% Ad Growth For 2012 Forcast By Pivotal Research Report

Slow Ad Growth For Radio

PIVOTAL RESEARCH GROUP analyst BRIAN WIESER, formerly with MAGNA GLOBAL, has released a study that expects slow growth for advertising in 2012.

"During 2012," writes WIESER, "we expect advertising will grow by 1.0% on a normalized basis in the UNITED STATES (excluding the impact of political and OLYMPIC-related activity), based on our extensive ongoing conversations with practitioners of media buying and selling. Revenue growth almost solely arises from the introduction of new categories or emergence of new brands and that individual marketer budgets tend to hold constant over time. We do not foresee any significant new categories/brands emerging in 2012."

In what he calls a "Have And Have Not Economy," WIESER adds, "We expect that spending levels will generally flatten through the middle of 2012, after which the impact of status quo 'new normal' should return, with weak growth in the periods that immediately follow."

As for radio, the report forcasts Total Local Radio to rise slightly from 0.0% in 2011 to +0.2% in 2012. "Local radio still valued by core advertisers, but the medium has lost its sheen for most of the largest marketers, many of whom are unlikely to consider the medium," notes the report.

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