| Abstract: | Standard&Poor's Ratings Services' outlook for the U.S. media and entertainment industry calls for a minimal boost in ad spending, largely because of the elections and Olympics, and to continued brisk Internet demand. These are the few bright spots as the U.S. economy has slowed to a crawl. Decelerating GDP growth, restrained by a weak housing market, spiking fuel costs, creeping food prices, and rising unemployment, is an ominous indicator for ad spending. Internet ad spending, when we include search advertising, sped past magazine advertising in 2006 and, we expect, will leave radio advertising behind in 2008. Our overall ad spending forecast now calls for only 1.7% growth in 2008, on the heels of essentially flat 2007 spending (negative
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