The plummeting stock market and news that three well-known firms are in serious financial trouble has had limited short-term fallout on Madison Avenue. But the longer-term damage to consumer
confidence could be a lot more serious for the media industry.
The print and business-to-business advertising sectors--which are already hurting -- are initially expected to be roiled by
Lehman's demise, Merrill's sale and AIG's woes.
"The firms that have been specifically most impacted have not been our largest advertisers, but this has created a general malaise
that has affected the entire financial category, and frankly, the economy in general," says Vivek Shah, president of Fortune and Money magazines.
When the economy is
struggling, media spending and sponsorships by all kinds of brand marketers is likely to be cut back. Ironically, Bank of America will need to keep advertising to make sure consumers understand
what the combined entity of BofA and Merrill Lynch stands for.
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