While everybody agonises about the troubles of print media, news from America is that ad sales for the five big broadcast networks are down 15%. That points to a general malaise in the news media, and although print media have been particularly hard hit by the advertising slump, all media will be affected. I can’t wait for the latest adspend figures in South Africa. While we know that newspapers and magazines are feeling the pinch – because the owners of many of them are listed companies that have to report financial results – we do not yet know how television and digitial media have been affected. The SABC blamed a R400 million drop in ad revenue for its current financial crisis. I think some other nasty surprises may be in store. Now is not a good time to buy shares in media companies.
Ad slump hits television