Commentary
Media Belt-Tightening
- by May 10, 2001
In its most negative outlook yet for the media industry, Myers Reports Inc. issued a report on May 1 showing a revised long-term media spending forecast that calls for a drop in U.S. ad spending in 2001, and virtually no growth in 2002.
The forecast doesn't see material growth in U.S. media spending until 2004 (+3.6%) and calls for relatively flat growth for two years following that. "… we can expect some radical belt-tightening and shifting of business plans and strategies," predicts Myers chief media economist Jack Myers.
Myers' Revised Media Forecast
| 2001 | 2002 | |
| Network Broadcast | -3.0% | NC |
| Network Cable | +8.0 | +6.0% |
| Syndication | -5.0 | -2.0 |
| National Spot TV | -15.0 | -4.0 |
| Local/Region. Cable | +5.0 | +5.0 |
| Online | +40.0 | +30.0 |
| Magazines | +0.5 | -2.0 |
| Newspapers | +2.5 | +1.0 |
| Radio | -6.0 | -2.0 |
| Outdoor | +2.0 | -2.0 |
| Yellow Pages | -1.0 | -2.0 |
| Other | -6.0 | -2.0 |
| Total | -1.5 | +0.2 |
Source: Myers Reports Inc.
And, in a Daily Briefing, the Audit Bureau of Circulation also reported on May 1st that daily newspaper circulation fell 0.9% and Sunday circulation fell 1.7% during first quarter 2001. In a related finding, Scarborough Research's Spring 2001 Competitive Media Index showed that daily newspaper readership fell to 53.5% from 55.1% a year earlier.
Read more at Myers.com.
