US ad spending forecast to drop 5-8% in 2009

Advertising spending in the US is expected to come under increasing pressure in 2009, with an industry executive forecasting a 5-8% decline. A fall that size would mark the biggest drop for eight years, and Steve Lanzano, COO at MPG North America, said local advertising such as radio, television, newspapers and traditional billboards would be hit hardest, Reuters reported. MPG North America is a unit of the French advertising group Havas SA. Speaking at the Reuters Media Summit in New York, Lanzano said the second and third quarters next year would be crucial. "I think if the economy continues to go south, you're going to see some real hits across all media in the second and third quarter of next year," he said. (taken from wgsn-edu.com)