Superstorm Could Cost Media Biz $500M
Hurricane Sandy, the superstorm that left billions of dollars in damage and large portions of the Northeast in the dark earlier this week, is expected to have a major impact on the media industry as well, costing it as much as $500 million, according to a new report this week from Pivotal Research Group.
“Advertising was already looking weak with the risks of the Fiscal Cliff heading into the summer,” Brian Wieser, an analyst for the group, wrote. “If we assume that spending equivalent to one day of the fourth quarter was ‘lost’ (because of interruptions to local TV and radio programming for several days in a significant portion of the country paired with the impact on decision-making among national marketers and media buyers based in the storm’s footprint), the storm will cost the industry almost $500 million of activity.”
The group is reducing its forecast for total normalized advertising — minus Political and the Olympics — to -0.5% for the third quarter and -1.4% for the fourth quarter, down from the 1.2% and 0.9% growth rates the group had previously projected, Wieser wrote.
“Full year 2012 growth is now forecast as 0%,” he said.
Read the full report here.