A recent article by Lara Sinclair, touched on the effects of the current world financial crisis on the media.
Budget shortfalls and the weakest TV advertising market in seven years are combining with fears about the US financial services meltdown to fuel a growing pessimism about the health of the $4 billion TV advertising market.
A television executive said that the three commercial networks were facing "carnage" as they began negotiating advertising rates for 2009 with the big advertising agency buying groups. The article states no networks are meeting budgets and that anyone who's prepared to sign deals will get a good price.
In September advertising moved to a short-selling cycle amid speculation of a $15 million shortfall in metropolitan TV advertising budgets (split between Channels Nine and Ten).
Ten sales director Vance Lothringer denied the claims of a shortfall yesterday but said Ten had only just made its monthly budget. "As of today we are going to achieve September budget," Mr Lothringer said. "In a slow market that's pretty good. It's slower than the average but we're not seeing it dramatically down."
Nine sales director Peter Wiltshire said there had been a "hangover" month either side of the Olympic Games on Seven, but claimed Nine was "satisfied" with its performance in September. He said 2008 would be a year of "correction" after a buoyant 2007. "2009 looks to be challenging for the economy," he said. "Myself, I think TV is in good shape."
Seven sales chief James Warburton said that while there was no doubt the market was short, the network had had a "good third quarter". "Much depends on the attitude of retailers leading into Christmas," he said. Mr Warburton would not confirm Seven's rates position, but said the network was "confident of retaining key share arrangements with all buying groups".
News Limited sales director Tony Kendall said newspaper display revenues were "holding up okay" but classified advertising was "a problem". The advertising slowdown has also spread to radio and print.
Broker UBS released a note this week saying metropolitan radio spending slumped 5.2 per cent in August, and advertising buyers said magazines were down by a similar amount.
It’s been a pretty good 18 years or so, but now the world financial crisis seems to be clenching its claw in every nook and cranny of society; the media industry, and my wallet alike are far from immune.
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