Ad industry to witness longest spending decline since Great DepressionDecember 30th, 2008 - 5:22 pm ICT by ANI
New York, Dec 30 (ANI): The ad industry is likely to experience the longest advertising spending decline since the Great Depression, predicts leading advertising industry expert.
In an interview to Advertising Age magazine, Bob Coen, the senior VP director of forecasting at Interpublic Group of Co.s” Magna had said that ad spending dropped in 2007 and 2008, and is likely to fall further in 2009.
This would be the first three-year decline since the Great Depression.
The hardest hit industries include retail and auto industries.
With plummeting sales and profits following the global economic crisis, many companies are likely to further cut back on their advertising spending.
“We”re looking at the worst holiday retail season in four decades,” the New York Daily News quoted Britt Beemer of America’’s Research Group as saying.
He predicted a 2.8pct drop in sales nationwide from last Christmas season.
The number of shoppers also fell 15pct from a year ago. And with the economic downtown, the amount of money spent could easily be down 30 pct.
U.S. automakers were in such dire financial straits that they had to beg for a government bailout. They received 17.4 billion dollars in short-term financing to help keep them afloat during this economic crisis.
U.S. ad spending in 2009 is likely will drop to its lowest since 2003. (ANI)
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