Superstorm Throws Sand In Face Of Ad Economy, Reduces '12 Ad Growth To Zero
At least one highly respected media industry economist -- Pivotal Research Group's Brian Wieser -- has already attributed a downgrade to the U.S. advertising industry to the effects of Hurricane Sandy. Wieser's new forecast, coming on the heels of especially tepid third quarter earnings reports from the major agency holding companies, means the ad industry will not expand at all during 2012.
Given its timing during a crucial week in the Presidential campaign season, Sandy could trigger another ad economy fallout: Cutbacks by political campaigns pulling TV and newspaper advertising in the Northeast.
“Many political campaigns save a large percentage of their advertising budget for the final week leading up to the election,” says Rich Swingley, a Ball State University telecommunications instructor, adding: "For those heavily contested races on the Eastern seaboard, we may see a shift away from television and print. There is no electricity for television and the print media cannot be delivered as normal for the next few days.
“Radio may be the big winner, since it is the only medium that can be easily accessed using batteries,” he predicts. “There's no point in spending advertising dollars on a medium that potential voters can't access.”