Advertising Budgets Expected To Shrink

    January 14, 2008

Something like 20 minutes out of every television hour seems to be dedicated to commercials; advertising is pretty firmly entrenched in our lives.  Spending on it is likely to go down, however, with the exception applying to online ads.Advertising Budgets Expected To Shrink

Advertiser Perceptions conducted a survey of professionals in this field, and Marketing Charts reports, "Just 16% of ad executives expect radio’s share of spending to increase over the next six months, compared with 26% who said so in the spring and 19% who said so a year earlier."

Also, "Just 22% of ad execs said broadcast TV ad spend would increase, down from 29% in the previous two surveys."

This falls more or less in line with all sorts of economic indicators; the number of "for sale" signs in certain neighborhoods is startling, and watching the stock market will make even an uninvolved individual sweat.

A good piece of news (although even this won’t persist through a prolonged recession) came from Advertiser Perceptions’s research concerning online ads: "Ad execs were by far the most optimistic about the prospects of online ad budgets, with 76% projecting an increase over the next six months . . ."