Prediction: Softer Market in ‘07 Means Media Buying Opps

There should be some excellent media buying opportunities in 2007 for the astute advertiser and media negotiator, according to a new guide to media and marketing costs and data.

Advertisers should see some relief in rising advertising media rates in 2007, according to predictions made in the 2007 Thumbnail Media Planner. “While price increases or decreases will vary by medium and market, we think there will be a softness across the board which will create some significant media buying opportunities,” according to Ron Geskey, publisher of the Thumbnail Media Planner.

“Led by the lackluster upfront markets for network and cable television, a slowing economy, and no elections sucking up media inventories in 2007, price increases should be nominal, averaging about two percent or less. That means that buying efficiencies could be improved by 20 percent or more,” he says.

For example, deals should be available in spot television where forecasts are for about 8 percent lower revenues in 2007 vs. 2006, when congressional elections boosted local TV sales. Without a resurgence of local automotive spending, radio will also likely be very soft, as it fails to attract major national ad dollars and its fragmented audience is siphoned off by non-commercial satellite and internet radio.

Print media will try to slip their traditional annual rate increases onto advertisers. But while in yesterday’s media world, print succeeded in pricing their ads according to a rigid rate card, that world has changed dramatically for those willing to play hardball. Most publishers will be willing to negotiate to prevent losing revenues and/or in order to capture new business.

An exception to the Thumbnail Media Planner’s soft market forecast will be the internet: ad revenues are projected to increase another 30 percent in 2007, led by search.