Level2wo

Less money to throw around and weak consumer demand is forcing companies to cut back on their advertising–in newspapers, radio, television, and just about any other media you can think of. While not completely dead (and for some, this is probably a good time to buy advertising, given that you can probably do a little more bargaining than usual to get the placements you want), retailers, financial companies, airlines, car dealers, and just about any other advertiser marketing products and services affected by the economy, gas prices, and the housing market disaster are cutting back, putting the hurt on media groups.

Conventional media, already on the ropes because of technological advances and advertising budgets shifting towards that technology, is getting the one-two punch from advertisers reigning in budgets or cutting their budgets completely, at least for the time being. And things will only get worse for media companies if the country goes into a recession (although, and I agree, we’re already in a recession).

While digital media has clearly boomed in recent years, the revenues that follow from advertising in that area may not necessarily be as high as if the marketers were sticking to conventional media advertising. Add to that the consumer cinching their wallets and cutting back on the products and services they’d normally be buying (but that are not necessities), and you can see how trouble is brewing for a good many companies. And it isn’t getting better any time soon.

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