New York—Two new reports provide glum forecasts of advertising expenditures through 2010.
WPP’s GroupM, the world’s largest media agency, predicted U.S. media spending would fall 4.3% this year and 6.8% next year. Three months ago GroupM predicted only a 3% drop for the U.S. this year.
The company attributed the worsening advertising environment to rising unemployment.
In a separate report, Morgan Stanley predicted that ad spending on broadcast TV will fall this year by 16.6%, to $36.8 billion, while cable TV advertising spending will drop 5.6%, to $26 billion. Local advertising is expected to be the most severely impacted; Morgan Stanley added that 30% of local advertisers see ad rates dropping this year by more than 3%.
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Ira S. Kalb
Kalb & Associates CEO
April 2, 2009 01:56 pm
Companies need to do more marketing in a recession. The reason there is a big drop in advertising is that marketers have not done a sufficiently good job to (1) create content that sells and (2) create a system to measure the effectiveness of the advertising that they have done. CEOs understand return on investments, and marketers have to do a better job of proving the ROI of their work.
Todd M. Kaufman
Hispanic Business Media / Integrated Media Marketing Manager
April 2, 2009 02:00 pm
I cannot stress the importance, especially in this current economic climate, of creating value when it comes to an organization's product or service offerings. Not only do more companies need to recognize marketing as the main driving force, but must understand that the target audience's perception of brand value is key to embracing the delivered messaging.
