The Magna organization predicted today a near-flattening of U.S. advertising spending in 2010. Slightly down is better than way down, which is how 2009 will be.
Magna, a division of the Interpublic group of agencies, suggests spending will decline 14 per cent in 2009 over 2008 levels. That may not seem catastrophic, but considering the spending levels began dropping in early 2008, it indicates a worsening of a deeply difficult position to begin with. Indeed, Magna suggests the first half of 2009 will prove the worst period of all, with an 18 per cent decline from the same period a year earlier.
Total spending will be $161 billion, down from $189 billion in 2008.
But Magna suggests the declines will stop into 2010 and the year will see only a two-per-cent overall drop year over year. The reason: The concern over financial institution health is over and that has given the market greater reason for confidence.