When a company has uncertainty and just doesn't know how to message, they simply don't advertise. The recent weeks are an example of that uncertainty, and companies don't know what is in store for them, so they don't advertise.
It isn't all doom and gloom for advertising and ad agencies.
One thing we know for certain is that football, kids returning back to school and the holiday seasons are coming -- and advertising will appear right with them. Companies need to get products off the shelves before the end of the year, and the wheels have already been put into motion to advertise to move inventory.
Despite the economic instability, we will likely have an average third and fourth quarter. I'm talking average and not great. The turmoil we are in killed great. That's why we should write a big thank you to football, school and the holidays for saving the rest of the year.
Advertisers shouldn't breathe a sigh of relief just yet. If this mess isn't resolved soon, we could be in store for a nasty first quarter 2012. We shouldn't treat this as the sky is falling, though, it is more of an awakening to a problem that lurked in the background all along. It then was pulled kicking and screaming into the foreground for our legislators to resolve.
The small reprieve recently granted allows a tiny window to get this economic roller coaster stopped. But until then, the answer to the decades old question of "Are you ready for some football?" is yes! Current advertising sentiment: After surveying national media buyers, we found the below stats to represent current economic sentiment for advertising:
·11% say their clients have warned them of an impending advertising budget cut
·7% say that the market's volatility prevented them from closing a new piece of business
·Spot TV and print are the two avenues that would be cut if this volatility continues ·The industries cutting budgets: auto, hospitality and entertainment