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Coen Lowers Ad Spending Forecast

Jun 26, 2007  •  Post A Comment

Venerable ad industry seer Bob Coen on Tuesday lowered his forecast for 2007 advertising spending.
Overall, he said U.S. ad spending will be 3.1 percent, down from his December forecast of 4.8 percent, said Mr. Coen, senior VP and director of forecasting at Universal McCann.
In his new forecast, Mr. Coen sees national spending at the Big Four broadcast networks up 3 percent to $17.2 billion, spot TV down 1 percent to $11.5 billion, cable TV up 4.5 percent to $20.2 billion, and syndication down 2 percent to $3.6 billion.
“High network TV price increases relative to general inflation drove many low-margin companies out of the market for many forms of TV advertising and the normal cycle of continuously high prices was broken,” Mr. Coen said in his report. “As long as there are plenty of perceived acceptable alternative choices, the major networks are not likely to experience a surge in short-term buyer demand unless their prices come down dramatically.”
(Editor: Romanelli)

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