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TMCNet: TNS Media Intelligence: Economic Recession to Bring Challenges to Ad and Media Industries

[December 20, 2008]

TNS Media Intelligence: Economic Recession to Bring Challenges to Ad and Media Industries

(Wireless News Via Acquire Media NewsEdge)
Total measured advertising expenditures in the first nine months of
2008 declined by 1.7 percent as compared to the same period in 2007,
according to data released by TNS Media Intelligence, a provider of
strategic advertising and marketing information.

Ad spending during the third quarter of 2008 was off 2.0 percent versus
last year, despite a positive stimulus from the Summer Olympics and
political elections.

"Media ad spending, which began tiptoeing into negative territory in
early 2007, has crossed an inflection point in the past six month as
the economic downturn has become more widespread," said Jon Swallen,
SVP Research at TNS Media Intelligence. "Preliminary data from the
fourth quarter indicate a further slackening of the overall advertising
market. Consumer spending levels, which drive the corporate profits
that in turn fund marketing budgets, remain a serious concern and will
have a strong influence on the depth and duration of the current
difficulties facing advertising."

"By most accounts, the current economic recession will be deep and
lengthy and with it will come continuing challenges for the advertising
and media industries," said Dean DeBiase, CEO TNS Media. "Undoubtedly,
these industries will have to make some hard decisions in the coming
months, decisions that perhaps had been deferred during periods of
growth. But ultimately, this period can be viewed as an opportunity to
effect such changes, leading to a leaner and more effective industry in
the years ahead."

TNS Media Intelligence found that:

- For the nine month period, Internet display advertising expenditures
increased 7.0 percent as marketers continued to expand their online
investments. However, growth rates have been getting smaller for five
consecutive quarters.

- The Summer Olympics boosted third-quarter Network TV ad spending and

turned a six-month loss into a nine month gain with year-to-date
expenditures up 3.0 percent. Cable TV (+3.7 percent) was aided by
limited exposure to the early-year TV writer's strike and successful
summer programming. Syndication TV (+9.0 percent) benefited from more
hours of programming.

- Consumer magazine ad spending was down 3.8 percent with the reduction
broadly distributed across a number of key categories including
apparel, direct response and pharmaceutical.

- Local media expenditures continue to deteriorate in the wake of
cutbacks from automotive, retail and telecom advertisers. Spot TV fell
2.6 percent, despite record-setting levels of political spending.
Expenditures plunged by 10.0 percent in Newspaper media and by 8.8
percent in Radio media. Outdoor advertising, after six years of
uninterrupted growth, fell into the red during the third quarter and
finished the nine-month period with a loss of 0.5 percent.

- Overall, local media ad spending was down 6.7 percent through
September while national media eked out a small increase of 0.9 percent.

((Comments on this story may be sent to newsdesk@closeupmedia.com))

((Distributed on behalf of 10Meters via M2 Communications Ltd -
http://www.m2.com))
((10Meters - http://www.10meters.com))

Copyright ? 2008 Wireless News

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