By David B. Wilkerson
U.S. ad-supported media will see a 14% decline in advertising
revenue this year, the ad-buying agency Magna said Monday, but
there is room for optimism.
Magna, a division of Interpublic Group of Cos.' (IPG)
Mediabrands, said the ongoing economic crisis triggered last
September will continue, as ad revenue is forecast to drop to $161
billion from $189 billion in 2008.
"The first half of 2009 will likely turn out to be the worst
period of this recession, during which time Magna estimates ...
advertising revenues will have fallen by 18% vs. the same period in
2008," the company said.
The agency said it has reason to be "encouraged" about
ad-supported media, despite the gloom of this year's first
half.
"A key factor causing the worsening of the economy last year was
the absence of confidence in financial markets. [However] further
collapse did not occur, and confidence in the stability of the
overall economy has gradually returned in recent months," Magna
said.
Ad-supported media will see improvement in 2010, as ad revenue
falls just 2% from 2009 levels.
Total growth in the market will "show up in the second half of
2011," Magna predicts.
-David B. Wilkerson; 415-439-6400; AskNewswires@dowjones.com