Media augur Jack Myers warned that weakness in the ad industry will last at least another year, as a survey by media and research publisher Jack Myers LLC – where he is chief economist – found that ad budgets will drop in the next six months.

The report from Myers (the company) concluded that adspend would tumble by an average of 12% in Q4 this year and Q1 2001, a direct result of the September 11 attacks and their fallout.

“There is a recognition that consumer spending has been negatively affected,” said Myers (the man), “which will cause a further drain on corporate profits [and] marketing budget cutbacks”

Although 49% of surveyed marketers are not planning to cut spend in the six-month period, 33% will make cuts of up to 10%, 12% said they would chop 11%–20% from ad budgets and 4% will halve marketing expenditure. The cutbacks follow a 5.9% year-on-year fall in adspend in the first half of 2001.

Myers added that an upturn in adspend “will materialize in late 2002 and early 2003, rather than in the first half of 2002. Any meaningful growth for the media economy is at least 12 months away and will follow an upturn in the general economy.”

News source: New York Times