Multichannel News recently conducted an online survey of ad sales executives to help gauge the state of local cable TV advertising and the results indicate a rough year in 2009.
The executives predict a tough sales climate, with 51% estimating flat or declining revenue in 2009. Nearly all (81%) picked local or regional economic conditions as the biggest challenge in the coming year. In fact, while local conditions may have a huge negative impact in some areas, others won’t be as hard hit. Areas experiencing the worst declines in the housing market may have the toughest time, while sales may be stronger in the Midwest, the Mountain States and some areas of the Southeast.
According to Multichannel News, these gloomy projections stand in stark contrast to the optimistic results of last year’s survey, when political ad money and the Olympics helped fuel growth.
For ad revenue trends by sector, nearly two thirds (65%) predict further declines in revenue from the auto sector, but 41% still expect automotive to remain their top money maker in 2009.
Cable systems are increasingly selling their Web sites, with 66% responding that they have a specific Web site designed to generate revenue. That’s up from 56% in 2007. And operators continue to insert ads on more cable channels, with an average of 53 in 2008.
Finally, on a more positive note, executives see both the Internet and local cable gaining market share in 2009. Ninety-seven percent predict a gain, or no change in market share for Internet, and 78% said the same for local cable. Some sectors , such as health and wellness, also continue to show double-digit growth and should remain strong in the coming year.
Read the entire survey at multichannelnews.com.
Monday, Dec 1, 2008
Michelle OBrien