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Impact of the credit crisis on media industries - Venture Insights

Report Overview

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Impact of the credit crisis on media industries

PublisherEnders Analysis.
Publish Date January 18, 2009
Sector Digital Media, Fixed Line (Internet and Voice), FTA TV, Pay TV, Print Media.

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Our current forecast of UK advertising revenues in 2009 is a decline of 12.2% across all the display media, led by a steep fall of 19% in newspapers, a result of the double whammy of the migration of classified advertising to the internet and the economic crisis.

Visibility is poor for TV advertising spend beyond January and February, which we expect to be down 10-15%. Although the influence of the internet on TV has been less severe than on the press, our initial forecast for the full year is of a 10% decline, due to the recession and deflationary pressures.

We expect internet advertising to continue growing through the recession, but at vastly lower levels we project only 2.1% growth in 2009, a sharp deceleration from 20% in 2008, and growth will be driven entirely by search, as both online classified and display spend are falling as advertisers in key categories cut back.