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Analyst Warns That World Events Could Dampen Resurgence in Ad Market

Apr 11, 2011  •  Post A Comment

The higher advertising sales that have buoyed shares of media companies such as Viacom and CBS Corp. may be short-lived, warned Barclays Research analyst Anthony J. DiClemente in a report, according to the Los Angeles Times’ Company Town blog.

DiClemente wrote that global events, including the earthquake and tsunami in Japan, could slow down the U.S. advertising market, the story says.

"Some recent data points may suggest that the ad market could in reality be less robust than year-to-date media performance implies," he wrote in the report.

One effect of the Japanese disaster is that Toyota plans to temporarily shut down U.S. factories because of a shortage of parts produced in Japan, where factories were damaged by the earthquake and tsunami, the story says. Toyota also has plans to cut its ad budgets, the story notes.

The combination of AT&T and T-Mobile could also eliminate hundreds of millions in ad spending, the story says.

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