Posted by chicagomedia.org on November 13, 2008 at 09:51:41:
TV set for ad dive
Managers not arguing with forecast calling for 7-11% drop in spot sales
Local television station managers -- who often exhibit the swagger of the ad sales executives many were at one time -- aren't all that upbeat right now. Especially since the Television Bureau of Advertising, in a rare move, has just issued a revised outlook for 2009 that predicts local stations will see spot television ad sales revenue plunge between 7 and 11 percent.
That is a much sharper drop than the previously announced 2-to 5-percent falloff predicted.
None of the local station managers we talked to the past couple of days took major issue with the chilling forecast, though few expect the situation to improve soon -- probably not until the third or fourth quarter of 2009 at the earliest. The advertising categories where every local station is feeling the pinch the worst are retail and automotive, cornerstones of spot TV ad buys.
As they watch ad sales plummet, every local station manager still has to work within a budget. NBC-owned WMAQ-Channel 5 President and General Manager Larry Wert suggested to us that budgets and station operations for 2009 may have to be tweaked a little -- or a lot -- depending on which station we're talking about and how bad things get.
WMAQ is like many other local stations, with the news division representing a huge chunk of the operating budget, which raises the question of what fate looms in the months ahead.
If staff reductions are made, Wert did not rule out possible buyouts of some on-air, big-contract talent.
"There is a major sea change happening in this industry, and we've got to be proactive," Wert warned.
Cuts don't seem to be in the cards now at market leader ABC-owned WLS-Channel 7.
"It would be folly for us to cut back on news," said WLS President and General Manager Emily Barr. "But I'm still watching expenses very carefully."
(Lewis Lazare, Chicago Sun-Times)