outdoor.internet advertising recession proof

It appears that as the US is slipping into recession, the more expensive forms of advertising, TV (Extremely expensive and less and less effective as people rightfully turn away), Radio, newspaper and probably Cinema, outdoor advertising and internet advertising has picked up the pace.

Both these forms of advertising are MCUs major source of income.

Reuters

NEW YORK -- A souring US economy put the brakes on advertising spending in 2007, as more than half of the top US marketers cut their budgets from the previous year.

Data released by TNS Media showed US advertising spending for the full year rose less than one percent to $US148.99 billion ($165.05 billion) after a fourth quarter when spending was essentially flat. The report said spending had showed no signs of picking up since then.

"As a whole, the ad market remains stalled and is being engulfed by the spreading pessimism about general economic conditions," said Jon Swallen, TNS senior vice president of research.

"Fourth-quarter performance was indicative of this malaise and early figures from 2008 suggest the growth rate for measured ad spending has not appreciably changed," he added.

A year ago, the research company initially predicted advertising spending would rise 2.6 per cent in 2007 after climbing 4.1 per cent in 2006.

But concerns about US consumer spending amid the credit crunch and housing downturn prompted corporate America to rethink advertising budgets.

Six of the 10 largest advertisers cut spending in 2007, including: General Motors , Time Warner , Ford , AT&T , Walt Disney and News Corp .

Overall, Procter & Gamble again finished the year as the largest spender, at $US3.49 billion, up 5.6 per cent, TNS said.

The spending cuts took a toll nearly across the board, with advertising declines in television, newspapers, and radio.

Spending on Web display advertising and outdoor advertising like billboards salvaged the numbers, rising 15.9 per cent and 4.9 per cent respectively. TNS does not measure search advertising, which by many accounts is the fastest growing sector of advertising.

While TNS did not include a forecast for 2008, others like Universal McCann have predicted a 3.7 per cent rise in advertising spending this year, thanks largely to the Olympics and the elections.

Regards.