Report: Hurricane Sandy Could Cost Ad Industry $500 Million Ad Age
Hurricane Sandy could cost the advertising industry $500 million, as many ads have been yanked and spending slowed for many marketers in the northeast, reports Advertising Age.
Research firm Pivotal Research Group lowered its ad forecast to a 0.5% decline in the third quarter, a 1.4% decline in the fourth quarter and no growth for 2012, the story adds.
"The first signs of a stormy second half of the year for advertising had become clear once the agency holding companies reported, and then Superstorm Sandy arrived, making us certain that 2012 will prove to be a year without growth for the U.S. advertising economy," said Brian Wieser, a senior research analyst at Pivotal.
He estimated the storm would cost the ad industry about $500 million in lost revenue from interruptions in broadcast programming during the storm and from decisions by media buyers afterwards.