Carat Forecast: Newspapers Losing to Digital Media Advertising?
Weather forecasts in the Philippines are vital pieces of information that prepares the public and vital agencies for bad days. In the advertising industry, media forecasts serves a similar purpose. The latest forecast from the UK-based firm Carat paints a grim future for newspaper advertising as digital media advertising is set to outspend it by the end of this year. This is in connection to the ad spending downturn which reduced growth rate from previously forecasted 5.8% to 5.3% at the end of the first half of this year.
Slow recovery of the American economy and the fall of the euro has affected ad spending globally even in the lucrative market of the Asia-Pacific Region. Ad spending in the Asia-Pacific Region fell by two notches to 6.8% as China, the region’s top spender, slowed down by 3.7% as well as Australia, another regional top spender. Reduced growth in Chinese ad industry has set a trend for other emerging markets in the region. Economic downturn in the United States and Europe continues to send chills to Asian economies.
As media agencies worldwide are tightening the purse, firms are finding ways to optimize consumer reach at a minimal advertising cost. With rapid innovations in the internet and mobile industry, digital media is seeing better days ahead. Digital media, with the social networking platforms and high traffic blog websites under its helm, offers cheap alternative to print and traditional outdoor media. Carat sees the ad spending downturn extending well into 2013 with digital media a driving force to curb expected investment losses.
Photo Credits: Regional Directory for Newspaper Publishers