Aegis Group’s media firm Carat has revised its forecast downward for both global and U.S. ad spending during the full calendar year 2009. Back in March, Carat projected a 5.8 percent decline in worldwide ad expenditures for ’09 as compared to the prior year. That figure has now been elevated to 9.8 percent due to lowered performances in all regions except for Asia Pacific which sports a marginal uptick.
Looking ahead to 2010, Carat sees significant improvement, going from a loss in ’09 to modest growth pegged at one percent globally. Carat attributed the turnaround to what it foresees as more stable conditions in the West and recovery in developing markets, particularly China.
Online advertising remains the only area of the media that will see growth this year, estimated at one percent globally. Online growth remains in double digits in the markets of Asia-Pacific and Central and Eastern Europe this year. However, low single digit growth in Western Europe and a decline in the U.S. have led to a downward revision in forecasts. Online growth should continue to make significant progress in 2010. Of the sectors, TV and cinema continue to hold up best, reflecting the relative popularity of cinema and home entertainment in the downturn.
Stateside report
However, the ad market in the U.S. is much slower, according to Carat. U.S. advertising spend in the first half of ’09 was well below the level in ’08. Previously committed activity was scaled back while significant incremental spending has not materialized this year. Carat’s revised full year projection for ’09 shows a 16.3 percent decrease in the U.S. when stacked up against ’08. The March ’09 forecast from Carat had predicated only a 9.8 percent increase stateside.
As for prospects for the U.S. in ’10, Carat concluded that a significant recovery could not be expected until the second half of that year at the earliest. All major media categories are tracking below last year. National television and radio have been holding up better, due to their ability to drive strong reach and awareness. Newspapers continue to be hard hit by both the weak economy and consumers spending more time online. The real estate and automotive categories have cut back sharply and classified advertising is weak. Digital losses have been softened by some traditional media spend shifting over and the continued strength of search advertising. Online video has also experienced growth; however online display has been much more negotiable in terms of price.
CEO’s assessment
Of the significant forecast revisions globally and in America, Aegis Media CEO Jerry Buhlmann said they “are not unexpected in the context of the recent volatility of the market, and represent a cautious attitude towards adspend this year, most significantly in the U.S. and Europe.”
He added, “Despite the reduction to forecasts for 2009, we still believe that 2010 will see growth, albeit very modest. We expect the market to bottom out in North America and Europe, and to improve further in developing markets. Even after that initial recovery, however, the global advertising market will still be below its absolute 2006 level.”
Sinners and Saints Adds Apple Pie To Its Branded Menu
Bicoastal Sinners and Saints--the multidisciplinary studio overseen by managing director/executive producer Heather Heller, and partners/EPs Yann Henric and Thomas Carroll--has added Apple Pie Tabletop to its roster for branded content. Known for its food and beverage content creation, Apple Pie comprises the husband-and-wife team of director/DP Gene Dubin and director/art director Alisa Volodina. In addition to representation, the move expands Apple Pie’s production capabilities through the combination of its centrally located full-service studio in New York and a newly established mobile studio in Los Angeles. Apple Pie recently teamed with Sinners and Saints on a Wienerschnitzel project created by Innocean.
“We believe that our dual studio strategy positions us uniquely in the competitive landscape of food and beverage storytelling,” said Heller. “By blending the artistry of the New York studio with the flexibility of our Los Angeles location, we can tailor our productions to meet the unique demands of each project, regardless of geography.”
“Working with Sinners and Saints in the demanding field of tabletop was an absolute pleasure,” shared Apple Pie Tabletop in a joint statement. “Warm welcome, unwavering support and dedication--everything a director can ask for. The entire experience was both enjoyable and rewarding. We will not miss an opportunity to collaborate with them again.”
“The first thing you notice is that Apple Pie has beautiful work,” Heller observed. “Having worked with them, I can say that Gene and Alisa are extremely meticulous and detail-oriented; their combination of talent and agility appeals to agencies and clients.” Also appealing to Heller is Apple Pie Tabletop’s brisk international... Read More