Advertising market declines

Posted by Michael on March 7, 2009, 4:09pm, 131 views

According to The Australian, media analyst Finola Burke has forecast tough conditions for advertising sales until at least 2012.

Ms Burke expects the advertising market to hit a low this year after revising her forecast decline in advertising dollars this calendar year to $11.1 billion (excluding online and pay TV), down 7.2 percent.

She expects the brunt of the decline to be borne by metropolitan newspapers and television networks.

Anecdotal experience supports those conclusions.

Advertising column centimetres are down for most newspapers and the word among industry players is that television is discounting big time to retain bookings.

As a discretionary spend, advertising normally takes a hit when times are tough.

It will be interesting to see how media owners react. It’s not easy to keep cutting costs without compromising on product quality.

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