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Anxious consumers cancel new cars and new TVs, and go for no-brand products and hard discount.
In the UK, the retail sector maintained adspend in the first half of 2008 but then they have started to give in.
In this context, how are ad-funded businesses likely to fare the storm, compared with other media/entertainment sectors?
There are three fundamental business models in the media ecosystem: companies living on subscription-based services, like pay TV or broadband ; those living on discrete consumer sales, like theatrical exhibitors and DVD publishers/retailers ; and those living on advertising sales.
Going to assist much specially for competitive keywords.
Now if it turns out that some retailers simply disappear (like Woolworths and Zavvi), we are likely to reach deeper water in terms of ad recession.
Surviving brand will certainly not increase their own spending to compensate for the dead—quite the opposite if the level of competition is reduced.
A third reason is that media is essentially a fixed-capacity, fixed-costs activity like air transport.
Whether they carry ads or not, TV channels and outdoor billboards cost about the same to produce and maintain.
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