According to New York-based market researcher TNS Media Intelligence, U.S. advertising spending fell 3.7 percent in the second quarter from a year earlier, the biggest decline since 2001, as automakers and phone companies cut marketing budgets as the economy struggled.
Spending in the first six months of 2008 dropped 1.6 percent, including a 0.6 percent gain in the first quarter. Advertising slowed on every medium in the second quarter compared with the first. And according to economists surveyed this month, consumer spending in the third quarter will probably be the weakest since 1991.
What interesting is, advertisers are shifting marketing dollars to the Internet, cable television and syndicated TV to target more specific audiences. Spending rose 8 percent on Internet display ads and 3.1 percent on cable in the first half, while newspaper and radio continued to decline. Ads on network TV fell 2.4 percent. National newspapers declined 9.5 percent, while local newspapers dropped 7.1 percent.
This is good news and bad news for internet marketer, especially who is using adsense, because advertising from other media are moving to internet ads. The bad news is advertising is predicted to go down next quarter. Save your money on advertising, because demand is low currently.