Local TV may be stuck in an advertising slump for the next few years, reports Media Life Magazine, thanks in part to the shrinking revenue from the beleaguered banking giants advertising their financial services. The fact that that segment is contracting, such as Citibank announcing it was buying Wachovia this week, also means fewer financial companies who need to market themselves.
Reports Kevin Downey:
Corporations will continue to hold down ad budgets on most media types as consumers continue to hold back on spending.
And insiders don’t see the malaise ending any time soon.
"I think we’re looking at 18 months to 36 months of recessionary spending,” says Jack Myers from the Myers Media Business Report. “Ad spending is a percentage of sales, and companies are projecting that sales will be flat to down. Therefore, ad budgets will be down.”
Analysts see a slightly brighter future for the internet and for network television.