In both an Olympic and presidential election year, U.S. television revenues are still projected to drop 7% according to BIA Advisory Services. This represents a loss of over $3 billion. Subtract the $1 billion that NBC generated with the Olympics and the more than $2 billion spent by the political parties on TV and it all adds up to a $6 billion (-14%) shortfall when compared to 2007 revenues. 2009 looks to be even worse – cliff-hanger indeed.
Radio revenues continue to skid
U.S. radio revenues have just experienced the largest year over year drop in one month. The Radio Advertising Bureau just released the November numbers and they’re down-right scary. A 22% drop in national and local ad revenues. When you look at November over two years (2008 vs. 2006), it’s a 29% drop. Radio has not had a year over year revenue increase since April 2007, and that was only 1%.
Newspapers not delivering
According to theNAA, U.S. newspapers lost $15 billion, in the first three quarters of 2008, compared to 2007. In the third quarter, they dropped over 19%. Classifieds continue to be the hardest hit with a nearly 31% drop. The category has been hit hard for years. In 2000 Classifieds accounted for over $5 billion in revenues, this year it will barely crack $2 billion.
It’s not just the economy stupid.
Mass media advertising is heading for a world of hurt.
What will happen to the advertising industry? I have a few thoughts, but they will make for future posts.
As I have written before, the newspaper industry is dead. If you didn’t think so then, how do you feel about it now that the second largest newspaper company, Tribune Company, has filed for chapter 11? Add to that the fact that the New York Times (the nation’s largest metro newspaper) has been forced to put its office tower up as collateral for a$225 million loanand we have the beginning of the end.
There is no doubt that 2009 will bring a lot of change to the advertising landscape.