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U.S. Ad Market to Decline by more than $1.6 Billion in 2009

Consumers now choose from an average of 119 TV channels, more than ever before in history, but those channels are competing for attention with a trillion internet links and more than a million mobile Web sites.  According to a recent Yankee Group research study, this oversupply of media is driving a more than $2 billion decline in TV advertising, which, combined with the economic recession, will pull down the U.S. ad market by more than $1.6 billion in 2009.

The market power of television is being eroded by dramatic growth in IP networks and their corresponding capacity to carry advertising. Yankee Group forecasts there will be more than 477 million wired broadband users worldwide by the end of 2009, a boost of more than 50 million since 2008. In addition, Yankee Group survey data show that 12 million more consumers are browsing the mobile Web now than in 2008.

As consumers become increasingly connected, behaviors are changing. New demands abound for Anywhere Media that is screen-independent, on-demand and easy to consume.

“As the Anywhere Network grows to connect nearly everyone on the planet, media companies must adopt new business models that acknowledge that consumers now have more power over their business,” said Carl Howe, Yankee Group director and author of the forecast. “Just as the music industry was forced to reinvent itself when digital downloads undermined its traditional strategies, the Anywhere Network’s abundance of content and advertising inventory will similarly reshape the TV, print and mobile media industries.”