Companies pull back on advertising
TEXT OF STORY
Kai Ryssdal: There’s a big media conference in New York City this week. Things kicked off this morning with some pretty depressing statistics for the advertising industry, the industry on which all of those media companies depend so much. Corporate ad spending in this country is expected to fall to as much as 9 percent next year. Hard times in Detroit are part of the cause of the drop. Cars have traditionally spent more than anybody else on marketing.
But as Ashley Milne-Tyte reports, everybody’s pulling back.
Ashley Milne-Tyte: These are dark days for Madison Avenue. Matt Coppet is global media strategist with UBS. He says spending on marketing will drop more than 8 percent next year. And it gets worse if you focus on the traditional print, radio and TV ads.
Matt Coppet: This is a big deal. Like, if you take out the internet we are at minus 11 percent. And minus 11 percent is the worst decline in 60 years.
Tom Finneran is with the American Association of Advertising Agencies. He says ad agencies are whipping out pie charts and Power Point presentations to demonstrate the bang clients are getting for their buck. He says agencies will sometimes suggest a brand keep advertising but change its focus.
Tom Finneran: There might be different forms of messaging that might be appropriate in this type of economy.
In tough times, he says, a paper towel brand might want to switch its emphasis from softness to strength and value. Still, he says, when clients cut back on advertising, some industry layoffs are inevitable.
In New York, I’m Ashley Milne-Tyte for Marketplace.
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