Media Spending Revision: TV Down

By Dennis Liff

Overall spending on media and communications will fall .4% in 2009, according to private equity firm Veronis Suhler Stevenson, revising downward an earlier estimate.

The new projection was generated in response to the economic downturn.

The revised forecast is down from a previous estimate of 5.4% growth for the year, and follows an increase of 2.3% in 2008. The figure for 2009 represents the lowest industry growth rate, and only the second decline, in the three decades that Veronis has been collecting data, the company reported.

The hardest-hit media segments, according to the new forecast, are newspaper publishing, projected to decline by 16% (following a 13.5% decline in 2008), and broadcast television, forecast to be off by 9% (following a decline of 0.5%).

Consumer magazine publishing, projected to decrease 8.5%, and broadcast and satellite radio, down 7.2%, are also among the segments facing the steepest declines.

Advertising spending is projected to fall off by 7.4% in 2009, Veronis reported.

(Editor: Baumann)