What’s hot (and what’s not) in media – study

August 4, 2009

Veronis Suhler Stevenson is offering a look into its crystal ball.

The private equity firm, a leading one in the media and communications business, came out today with its 2003-2013 forecast, which essentially says the global recession will speed up needed changes in the media world. In other words, things like branded entertainment and mobile advertising are going to get even hotter, even faster.

And things like newspapers, radio, and yellow pages? Well, don’t ask.

Jim Rutherfurd, Executive Vice President and Managing Director at VSS, summed it up like this in a prepared statement: “The prolonged economic downturn has accelerated changes already underway in the communications industry. Notwithstanding significant declines in traditional media, the industry taken as a whole will continue to show relatively solid performance compared to the overall economy.”

Here’s a quick hit of some key takeaways from the VSS study:

  • Total communications spending will decline 1 percent in 2009 to $882.6 billion.
  • However, total communications spending will grow 3.6 percent per year over the next five years to $1 trillion.
  • That will make communications the third fastest growing sector of the U.S. economy.
  • Alternative marketing segments will grow at 12.6 percent annually from 2008-2013.
  • Here’s what’s looking good over the coming years: Internet media, professional information, business information, education, direct marketing, event marketing, public relations, e-books, word-of-mouth marketing, subscription television, mobile advertising, video games, trade shows, digital out-of-home.
  • And not so good: Newspapers, consumer magazines, broadcast television, radio, traditional out-of-home, yellow pages, home video, recorded music, traditional consumer books.

(Photo: Reuters)

One comment

We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/

Word of mouth marketing is indeed looking good.According to PQ media Word of mouth marketing report, brands all across have increased spending on WOMM which reached $1.54 billion in 2008. As an online marketer it’s quite encoraging to know that overall communication industry has shown a solid performance, despite the economic slowdown.

Cheers!