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US advertising down until 2010, though interactive overtakes newspaper spend

Written on
Jun 25, 2009 
Author
Edward Barrera  |
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US advertising down until 2010, though interactive overtakes newspaper spend

money_small.jpgADOTAS — Global advertising spend is expected to drop 5.5 percent in 2009, before a mild recovery begins in 2010, according to estimates from GroupM.

Spending on measured media was expected to drop to $417 billion in 2009, down 1.4 percent to $411 billion in 2010, according to the forecast which looked at 70 countries. And earlier forecast in March put the 2009 decline at 4.4 percent. Brazil, Russia, India and China were set to lead the recovery, according to the estimates, while spending on advertising in the United States, Britain, Canada, France, Germany, Italy and Japan was forecast to lag behind the recovery.

Advertising spend in the United States was forecast to fall 4.3 percent in 2009 followed a 6.5 percent drop in 2010.

“Advertising lagged economic recovery for about 18 months after the recession of 1992 and about 12 months after the one in 2001,” GroupM Futures Director Adam Smith in London said in a statement. “Our global forecast for 2009 has finally stopped tumbling. The 15 countries still reporting positive ad growth in 2009 has become 33 in 2010, and the number could rise as we phase through the year.”

Interactive media will overtake newspaper’s U.S. advertising share this year,according to MediaPost. Newspapers, which had a 14.8% share of U.S. ad spending in 2008, will fall to a 13.6% share this year, and a 12.4% share next year. Interactive media had a 13.9% share in 2008.





Reader Comments.

Ad spending overall is down, but CPA advertising is way up. Advertisers are being extremely frugal with their budgets but they will spend if they know they can get the return they require. Smart marketers use smart advertising during a recession. Clearly the boom market advertising methodologies don’t necessarily apply in leaner times. Smart marketers need to reduce advertising waste, measure twice and cut precisely in the areas which will provide the most ROI. More and more marketers are moving to a pay-for-performance model for their advertising. Cost Per Action, Cost Per Engagement and other specifically measurable performance-based marketing models are the key to efficient and effective marketing in this economy. Don’t stop advertising, just be smarter about how, when,and where you’re advertising.

online advertising is far more able to deliver ROI than any other media. In ROI is guaranteed with this method. Newspapers can’t do that!

Posted by Sue | 5:01 pm on June 26, 2009.

Sue is so, so wrong and so emphatic with simplistic drivel I am almost embarrassed for her arrogance and that of others who do not understand the synergy between New Media and traditional media, as well as the independent strengths (and weaknesses) each has. To the original article’s point, ad spending is falling and the forecast is that it will continue. The first is true, and the latter may be. If it is, however, there will be some bright spots. Smart marketers will continue to test what media (and in what combinations) work for them. My guess is they will find a need for something beyond straight cost per action, and that positioning and branding in traditional media will continue to play an important role.

Posted by Bill | 3:24 pm on June 27, 2009.

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