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Wall Street researchers have again downgraded the U.S. and global ad spending outlook - and may have uncovered a new relationship, possibly due to digital media, between ad industry growth and economic expansion.
“Interestingly, advertising growth seems to be tracking real growth instead of nominal GDP growth, as it did in the past plus some,” Merrill Lynch ad industry analyst Lauren Rich Fine is quoted by MediaPost as writing in a report released Thursday, writes MarketingVox. “[M]edia no longer enjoys the benefit of above average rate inflation, rather the opposite where increased competition & measurement is putting pressure on rates.”
GroupM Futures Director Adam Smith has suggested that the change may in part be due to the increasing efficiencies of digital media as marketers begin shifting budgets to lower-priced online inventory.
Not surprisingly, then, Merrill said the internet is “the bright spot” within the overall advertising outlook, also citing “some indications that advertisers are putting some money towards new digital initiatives (i.e., mobile advertising, games, video on demand) rather than just online.”
Merrill Lynch now expects overall U.S. ad spend to grow 4.7 percent in 2006, down from 5.1 percent in its previous forecast, and global ad spend is expected to grow only 4.3 percent rather than the previously projected 4.9 percent.
Katz Radio Group has snared two more major clients, having approached and signed CBS Radio and Entercom Communications, formerly clients of Interep.
CBS Radio represented about a third of Interep’s total revenue, writes Mediaweek.
Interep filed last month to convert its…
B-to-b publication revenue was down slightly in 2007, sagging 0.4% from 2006; it was flat from 2005, according to American Business Media’s Financial Trend Report.
Print advertising pulled 84% of the average b-to-b title’s revenue, writes Folio.
Editorial, advertising and circulation…
The number of Britons accessing the mobile internet increased by 25% (from 5.8 to 7.3 million) from Q2 to Q3 2008, compared with only a 3% increase for PC-based internet users (34.3 to 35.3 million Britons), according to (pdf) insight data…
Email, news gathering and paying bills continue to be the most widely used online activities among U.S. adults, but downloading TV programs, watching videos and making web phone calls posted the biggest overall growth, according to data from Mediamark Research…
Black Friday is typically known as the day of unbeatable deals, but also long lines, packed stores, and jostling customers.
But this season, online retail giants Amazon and eBay are doing their best to get customers out of stores and…
Despite the U.S. financial crisis and dwindling marketing budgets at some financial institutions, the number of retention-related direct-mail offers sent by banks to current customers in Q3 2008 was 42% higher than in Q2.
View chart of estimated mail volume, Q3…
