Tuesday, May 11, 2010

Things are starting to heat up

A recent article on mediabuyerplanner.com confirms what we here at InLine Media have been seeing for the last several weeeks now - it appears the advertising industry is heating back up.

According to the article, Time Warner reported a 9.8% increase in earnings for the first quarter of 2010. They attribute the increase to two factors, an increase in subscriptions to magazines and properties they own such as HBO as well as an increase in ad revenues. Viacom also reported strong growth due to shows such as "Jersey Shore", which helped to achieve a 38% increase in profits over first quarter of last year for the company. CBS reported a 17% increase in ad revenues, (most of which can be attributed to one of the highest rated Super Bowls of all time) but nonetheless helped the company achieve it's first revenue increase in more than a year.

It appears many companies are looking to get back into the advertising arena to introduce new products and services in the hopes of building market share.

When you consider this, in addition to the many states that have hotly contested political races going on this year and all of the PAC (Political Action Committee) spending to sway your opinion on any number of issues, it's safe to say that the deep discounts in ad rates realized over the previous 12-18 months will not hold true for the remainder of 2010. It will be interesting to see where the economy's at and how rates come back down on the other side of November 2nd.

Until then, I suggest you keep your seatbelt fastened and return your tray-tables to their upright and locked positions. It appears we're experiencing some turbulence.

-The Capt'n

-SP

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