Media Sales Today

Time is probably not speeding up. But the rate at which consumers are shifting their attention across media channels seems to be increasing. And, this behavior poses a big problem for marketers.

According to many recently published reports, the recession is over. Not so fast, say marketers who participated in recent Association of National Advertisers surveys. Business conditions may be improving, but marketers intend to keep tight fiscal control over ad spending.

Local merchants and media providers are continuing their shift to the digital space. Newly released statistics from BIA/Kelsey show that the local ad market will remain robust, particularly for digital, but the numbers have been revised down slightly. The big question for this market is how significantly it will be affected by larger players like Groupon and Google as digital becomes more important.

Media companies may be holding their breath about the future. After the ad market came roaring back in Q4 2010, the growth rate steadily dropped throughout 2011. In Q4 2011, the ad spending growth rate fell into negative territory. While 2012 is expected to be a good year because of the Olympics and the elections, there is concern about the future.

Newspaper publishers are facing multiple challenges to their revenue streams. The auto industry and classified ad revenues have been shifting online. Now there’s word that another steady revenue source, public notices for state and local government agencies, is under fire.

The worst of the recession may be behind us, but the shakeout in the traditional retail industry is expected to last through 2012. Several thousand stores are predicted to close up shop across this country. This change will impact media companies who are competing to capture retailer advertising budgets.

In the world of newspaper circulars, several interested parties must work together to make the format a success: The retailers offering deals, the newspaper publisher that prints and distributes circulars to its readers, and the shoppers who redeem coupons. This system has been working well for decades but that may be about to change. The revenue that newspapers receive from their Sunday inserts could be about to take a big hit.