“Why Ad Industry Won't Recover In Second Half”
In an article in the August 10, 2009 issue of Advertising Age, Booz & Company Partner Christopher Vollmer (North America) predicted a continued bleak television advertising industry in the second half of 2009, mirroring the ad industry in general. “In this environment, ad spending for the broadcast networks may stabilize in the second half of 2009, but it is more likely to remain difficult,” he said. “Marketers continue to hold on to budgets longer and seek more flexibility in their buys.” Early returns on the current broadcast marketplace suggest revenues down by 15 percent or more, compared to a year ago. “(Television advertisers) also have more and more options—whether it’s cable, digital or other below-the-line marketing services,” Vollmer added. “This will not make it any easier for broadcast to get growth going.”