Ad spending outlook: some Good, mostly Bad, may be Ugly
The good news on ad spending ain’t so good. According to ZenithOptimedia, spending on advertising in North America and Western Europe is expected to grow by 3.8 percent this year. But that is lower than an earlier forecast of 4.4 percent, as the credit crunch saps confidence.
This comes after Carat, the media network owned by UK group Aegis, earlier this month cut its own forecast for growth in global ad spending in 2008 to 6 percent from 6.2 percent.
An even more grim reality: Ad agencies are prepping for a recession.
The silver lining is online, of course, but it may not last. Zenith sees U.S. online ad spending growing 23.4 percent this year to $47.5 billion, an upgrade from the 19 percent forecast in December, amid the continued shift from traditional media to interactive. But it downgraded its 2009 forecast for online to 15.8 percent growth.
Keep an eye on:
- Sony Pictures Television is looking to launch the first movie network on mobile phones in the United States, and has signed a deal with AT&T and MediaFLO USA to launch in May. (Hollywood Reporter)
- Microsoft and a company headed by Peter Safran, the veteran Hollywood producer and talent manager, have agreed to produce original shows for distribution on the Xbox 360 game system. (New York Times)
- More than 100 staff at Newsweek have accepted a buyout last week, including many senior editors and researchers. (Radar Online)
- Microsoft – Yahoo: No News is good news? (AllThingsD via Silicon Alley Insider)
- Live Nation lands 12-year digital branding, touring and merchandising pact with U2. (Reuters)
(Photo: Reuters file)