Canadian Radio Also Challenged By Economy

11-20-14

Multimedia giant Bell Media has cut 80 full-time positions in its latest round of layoffs, citing an "industry-wide challenging advertising market," according to The Financial Post. The cuts included radio and TV at the company and included CHUM-FM's popular host Amanda Logan. Bell Media Vice President of Communications Scott Henderson said, "The difficult decision was made as the result of continued financial pressure in relation to the industry-wide challenging advertising market for radio and TV."

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BIA Says Ad Revenue Will Not Keep Pace With Economy

3-20-2012

Today, BIA/Kelsey will release its latest 5-year forecast on advertising. It's a report the company puts together twice every year. Due to a stagnant economy last year BIA/Kelsey is first revising down its revenue figures for 2011 by $3 Billion. "In October we projected the total of the U.S. local media market to be $135.9 billion in 2011, but we now expect it to be only $132.8 billion. This slowdown, plus the lack of political advertising in 2011, resulted in a decrease of 2.4% compared with 2010." Looking ahead BIA/Kelsey predicts slow growth in local advertising and strong gains in digital

"The overall local media market will grow a bit more slowly over the next five years (at a 2.6% compound annual growth rate), and by 2016 the total will be $151.3 billion. Growth in total local media advertising will not keep pace with that of the overall economy. Growth in online/interactive/digital advertising revenues will remain strong, with a 2011-2016 compound annual growth rate of 12.7%. That compares with a 2011-2016 CAGR of 0.2% for traditional advertising revenues. By 2016 local online/interactive/digital advertising revenues will be $38.5 billion.

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Gingrich Revs Up The Radio Economy

3-1-2012

Even though he appears to be a long shot for the Republican nomination radio may want Newt Gingrich to stay in the race as long as possible. The Newt super PAC Winning Our Future is placing approximately $900,000 on radio ads in six states according to the Washington Post. The paper says the PAC bought $238,000 worth of ads in Georgia, $235,000 in Ohio, $172,000 in Tennessee and $98,000 in Oklahoma. It is also buying in two Southern states holding primaries a week later ? $92,000 in Alabama and $32,000 in Mississippi.

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Advertising Slowing Due to Sluggish Economy.

June 17, 2011

MAGNAGLOBAL, a division of IPG?s Mediabrands, releases an updated US Media Advertising Revenue Forecast yesterday and the news followed right along the lines of all the public radio companies we've been reporting on. The revised report says $173.1 billion dollars of advertising revenues will be generated in 2011, that's an increase of 2.9% over 2010. MAGNAGLOBAL was forecast an increase of 3.1%.  "In light of recent economic reports, excluding the impact of political and Olympic advertising.  While we see the disruption from the earthquake in Japan and high gas prices as temporary, the economy still suffers from a depressed housing market, sluggish employment conditions, and fiscal retrenchment at all levels of government.  Our previous forecasts had already conservatively assumed a slowdown in the second half of 2011."

Here is more from the report:
"A more pronounced shift to National Mass Media can also be seen in the strength of Network TV and Cable advertising.  In total, we expect National TV to grow 7.9% in 2011, up from our previous estimate of 6.5%. Despite upward revisions to National Mass Media, signs of a slowdown are concentrated in Local Mass Media, driven by weakness in Newspapers, Radio and Outdoor advertising.  Direct Media (which incorporates Internet Yellow Pages, Paid Search, Lead Generation, Directories, and Direct Mail) has been particularly impacted by sharper declines in Directories and a slowdown in Direct Mail."

"Online advertising growth exceeded our expectations in the first quarter as the share attributed to national media (primarily reflecting Digital Display and Online Video) was significantly higher than recent trends would have predicted.  Though some premium display publishers may have seen a slowdown stemming from the broader economy, National Online advertising overall benefited significantly from strong momentum in online video and social media as large national advertisers begin to invest more in building brand awareness online."

"Many of these advertisers are also investing more in Paid Search, allowing Direct Online Media to outperform our expectations.  We believe recent improvements made in search quality have benefited the sector and many more monetization opportunities exist in social media.  Online advertising, and Paid Search in particular, was likely helped by continued growth in e-commerce, which accelerated during the first quarter by 17.5% compared to the prior year period.  For 2011, we now expect $30.1 billion in online advertising, up by 15.6% from 2010 levels."

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