Barclays Capital Forecasts 10% Decline in 2009 Ad Revenues

Posted on 12/19/2008 by Julia Dudnik Stern | Printable Version | Comments (0)

Barclays Capital has joined the ranks of those revising ad-revenue forecasts down in light of recent market developments. Contrary to its previous prediction of a 5.5% decline in U.S. revenues, Barclays now expects advertising to dip significantly below the levels of the 1991 and 2001 recessions.

During the last two recessions, ad spending dropped by a respective 2% and 6%. Barclays is forecasting a revenue year far worse than the dip following the events of September 11.

Local advertising, which makes up roughly 40% of the $252 billion U.S. ad market, will decline by more than 12%, while newspapers will lose 17% of their already shrinking revenues.

In addition, 2010 will not be much better: Barclays predicts only a 1% overall increase from 2009—despite the Winter Olympics and congressional elections—with most segments other than the Internet continuing on the downward trend.

Copyright © 2008 Julia Dudnik Stern. The above article may not be copied, reproduced, excerpted or distributed in any manner without written permission from the author. All requests should be submitted to Selling Stock at 10319 Westlake Drive, Suite 162, Bethesda, MD 20817, phone 301-461-7627, e-mail: wvz@fpcubgbf.pbz


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