‘Severe slump’ in U.S. ad market seen extending into ’09

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New York—Total U.S. ad expenditures for this year are now expected to be up just 2.0% to $285.1 billion, said Robert J. Coen, senior VP-director of forecasting for MAGNA, who delivered his midyear presentation on ad spending on Tuesday. That is an adjustment down from his prediction last December that ad spending for this year would be up 3.7%.

“The outlook for U.S. advertising is not good,” Coen said, noting that economic expectations have seriously weakened since December. He characterized the industry as being in a “severe slump.”

Projections for 2009 are not much better. In his first forecast for next year, Coen predicted U.S. advertising would be up by 3.1% to $294.0 billion. “I don’t think 2009 is going to be a great year,” he said. “We don’t look for big improvement. It can’t get much worse.”

Overseas, the outlook is better, with some countries faring better than others. Argentina (30%), Russia (23%), China (12%) and Brazil (10%), are all expected to see double-digit growth in ad spending this year, Coen said.

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