The recession hit all aspects of American life, including advertising. Yet, while it’s unclear right now whether the rest of the country is coming out of the recession, the advertising world is making some definitive gains. Halfway into the year, it is becoming clear that ad spending is increasing.
Media analysts began the year predicting continual downturns in media spending from 2009; but, early into March and April, predictions were quickly changed to suggest growth. These new predictions are continually proving true as the year goes on. For TV, 2010 is already showing improvement.
First quarter results are in and TV advertising was up, with network revenues up 11% and local stations up 20%. Automotive and Political Advertising led the increased spending categories.
Further evidence of ad growth comes from the network upfronts. As of today, broadcast networks have already concluded their upfronts in just three weeks. All networks sold between 75 and 80 percent of inventory, and CPMs are up between 7 and 10 percent for all networks. Both the percentage of inventory sold, and the speed in which it was done, is close to the levels seen prior to the recession.
As media buyers, these improvements mean we have to adapt, too. We no longer have the upper hand that we did a year ago. And most importantly, we need to stay aware of all these changes in the landscape, so that we are prepared.
Still, if the advertising world is any indication, we can all be hopeful that we may be out of this recession soon.