TMCnet News
TNS Media Intelligence: Economic Recession to Bring Challenges to Ad and Media Industries(Wireless News Via Acquire Media NewsEdge) Total measured advertising expenditures in the first nine months of 2008 declined by 1.7 percent as compared to the same period in 2007, according to data released by TNS Media Intelligence, a provider of strategic advertising and marketing information. Ad spending during the third quarter of 2008 was off 2.0 percent versus last year, despite a positive stimulus from the Summer Olympics and political elections. "Media ad spending, which began tiptoeing into negative territory in early 2007, has crossed an inflection point in the past six month as the economic downturn has become more widespread," said Jon Swallen, SVP Research at TNS Media Intelligence. "Preliminary data from the fourth quarter indicate a further slackening of the overall advertising market. Consumer spending levels, which drive the corporate profits that in turn fund marketing budgets, remain a serious concern and will have a strong influence on the depth and duration of the current difficulties facing advertising." "By most accounts, the current economic recession will be deep and lengthy and with it will come continuing challenges for the advertising and media industries," said Dean DeBiase, CEO TNS Media. "Undoubtedly, these industries will have to make some hard decisions in the coming months, decisions that perhaps had been deferred during periods of growth. But ultimately, this period can be viewed as an opportunity to effect such changes, leading to a leaner and more effective industry in the years ahead." TNS Media Intelligence found that: - For the nine month period, Internet display advertising expenditures increased 7.0 percent as marketers continued to expand their online investments. However, growth rates have been getting smaller for five consecutive quarters. - The Summer Olympics boosted third-quarter Network TV ad spending and turned a six-month loss into a nine month gain with year-to-date expenditures up 3.0 percent. Cable TV (+3.7 percent) was aided by limited exposure to the early-year TV writer's strike and successful summer programming. Syndication TV (+9.0 percent) benefited from more hours of programming. - Consumer magazine ad spending was down 3.8 percent with the reduction broadly distributed across a number of key categories including apparel, direct response and pharmaceutical. - Local media expenditures continue to deteriorate in the wake of cutbacks from automotive, retail and telecom advertisers. Spot TV fell 2.6 percent, despite record-setting levels of political spending. Expenditures plunged by 10.0 percent in Newspaper media and by 8.8 percent in Radio media. Outdoor advertising, after six years of uninterrupted growth, fell into the red during the third quarter and finished the nine-month period with a loss of 0.5 percent. - Overall, local media ad spending was down 6.7 percent through September while national media eked out a small increase of 0.9 percent. ((Comments on this story may be sent to [email protected])) ((Distributed on behalf of 10Meters via M2 Communications Ltd - http://www.m2.com)) ((10Meters - http://www.10meters.com)) Copyright ? 2008 Wireless News |