Media and Money

Posts Tagged ‘newspapers

Good news for newspapers. According to a forecast from Borrell Associates, though newspapers will be down this year, expect a 2.4% rebound in newspaper advertising in 2010, and continued single-digit increases over the next several years. By 2014, newspaper ad revenues will be up about 8.7% over 2009 levels. While national newspaper advertising will do just fine, we foresee the greatest growth in local print – going from $8.9 billion this year to $10.1 billion, a 13.4% increase.

Veronis Suhler Stevenson (VSS) announces the publication of its newest Communications Industry Forecast (CIF) covering the years 2003-2013. VSS predicts that total communications spending will decline 1% in 2009 to $882.6 billion, but grow 3.6% per year over the next five years to over $1 trillion making communications the third fastest-growing sector of the U.S. economy over that period. Segments driven by end user spending and targeted marketing services are gaining even as traditional advertising is shrinking.

2008 and 2009 witnessed a major shift in the spending patterns in the communications industry as advertising became the smallest of the four major sectors in 2008 — a first for advertising since VSS began tracking the industry in 1986. While this period culminated a decade-long trend away from traditional advertising vehicles and towards institutional and consumer end-user spending and marketing services, it also highlighted the emergence of institutional and consumer communications as the dominant sectors in U.S. communications spending. VSS forecasts that the institutional sectors and various alternative media segments will drive overall communications spending for the next five years. More specifically, institutional end-user spending will remain the largest and fastest-growing communications sector, rising by 5.6% annually as a result of strong gains in business information services, particularly in the marketing and financial services sub-segments, and the for-profit higher education sub-segment of educational and training media and services. Alternative marketing segments – including branded entertainment and word-of-mouth marketing – will grow at 12.6% annually from 2008-2013 and will contribute to overall marketing services spending growth of 3.4% annually in the period 2008-2013.
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AP reports advertising forecaster, Magna, predicts that the worst is over for the U.S. ad slump but that across-the-board revenue growth won’t resume until well into 2011.

Magna, a unit of the Interpublic Group of Cos., estimated second-quarter ad revenue fell by 18 percent and said revenue will fall 14.5 percent for the year — the worst showing since the Great Depression.

“The economy accounts for the bulk of that decline,” said Brian Wieser, Magna’s global director of forecasting. “Every sector is being pulled down by this decline, every media that takes ad support.”
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Global advertising expenditure across television, newspapers, magazines and radio has recorded a drop of 7.2 percent for the first quarter of 2009 compared to the first quarter of 2008, according to a global advertising trends report released by research company Nielsen.

The report, Global AdView Pulse, reveals that the global economic crisis is taking its toll on the ad sector, with European countries taking the hardest hit, especially Spain (-28.2%), Ireland (-21.2%), Italy (-19.1%) and the UK (-14.7%). In North America, the US was down 12.7 percent. Declines in global ad spend were stemmed somewhat, however, by the Asia Pacific region which posted only 2.3 percent reduction versus first quarter 2008. In Asia-Pacific, Indonesia showed the greatest growth because of the elections with an increase of 19.1 percent, and China maintained growth but to a much lesser degree (+2.5%).
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