UBS Analyst: $11B Drop In 2009 Ad Dollars

Report puts total ad spend in the sector in 2009 at $172 billion, down from $183 billion this year.

By B&C Staff -- Broadcasting & Cable, 10/17/2008 8:52:00 AM

UBS Media Analyst Michael Morris is forecasting $11 billion to fall out of total ad spend on media in 2009.

The report puts total ad spend in the sector at $172 billion next year, down from $183 billion in 2008.

"It would be the lowest spend since 2004," he said.

 Some drop would be natural, as 2009 neither has an election nor the Olympics, which alone brought in over $1 billion to NBC Universal.

 "TV [overall] will decline 8 percent and stations will be particularly hard hit with a 12 percent decline," says Morris. "TV will be down $4 billion to $44 billion, stations will be down $3.4 billion to $26 billion, in part because political dollars won't be there, [broadcast] networks will be down about $500 million to $17 billion and cable down $700 million to $27 billion."

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