TV Ad rates to 15 year low in UK

Not really surprising, but interesting on the FT. TV Ad rates are now back to 1992 levels. We know advertising is a cyclical business, and no surprise is turning downward so quickly in such challenging (to say the least) economic environment. Also, the FT says that 35% of companies cut ad budgets for the 4th quarter running. Advertising revenues in TV fell 17% YoY in September, but the actual fall in prices is more like 25% considering the 10% growth in audience. I bet we haven’t seen the worst yet, and brand spend will keep on falling for the quarters to come. I am relatively more positive on online, especially DR (direct response), where things should hold up better, but overall, tough times ahead.

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