My friend Andrew, a honcho at Deutsche Bank, who’s been working with mortgage backed securities since the late 80’s, warned me last summer that things were going to get ugly. How right he was. Now that we’re facing a major economic recession, the pundits have started to forecast the decline in advertising and marketing budgets.
Media analyst John Janedis sees total U.S. ad spend slipping to a 0.8 percent growth rate this year and next year. He and others have revised their online spending estimates, and online media outlets have reported this with headlines such as:
Credit Collapse Dampens Prospects for Web Advertising (Clickz, 10/10) or
Online Ads to Take Hit Based on Economic Crisis? (Mediaweek 10/9)
What’s interesting in this is that their revising their growth forecasts downward, so that online advertising is expected to grow 10% and not 15% in one estimate (Wachovia) and 14% not 24% in another (Barclays).
Let’s see: we’re entering into a recession, overall ad spends will remain static, and online will increase between 10%-14%. That sounds like opportunity knocking. Marketers will demand that their spending be more targeted, efficient and results driven. Exactly what online delivers.
So while the economy is pretty scary right now and my 401K is only worth a 301K, it’s time for us online marketers to put our engagement ideas on the table to help our clients over the next year or two. It’s up to us. The money is there; the question is with whom are companies going to spend it.
Brian Eisenberg has a good article about this over at grok.com.
If you’re an interactive or Web firm, now’s the time.