Local New York Media Companies Taking Big Hit In Advertising
January 30, 2009
(Long Island, N.Y.) - “With a depressed economy and both large and small advertisers shutting down their doors and laying off production and editorial staff we have seen close to a 35% ROP advertising buy cutback in local, national and niche publishing titles across the print and digital publishing media industry within the past six months,” stated Kevin B. Kamen, President and CEO of Kamen & Co Group Services, the national media appraisal and brokerage firm based in Baldwin.
Kamen continued, “As we financially value media properties across the country on a daily basis, both magazines and newspapers as well as directories and shoppers, we have literally seen a massive decline in ROP display advertising and this is absolutely impacting the overall valuation of each business we examine. We have seen newspapers lose hundreds of thousands of dollars in value within a relatively short period as we examine and compare 2007 and 2008 numbers in both terms of gross sales and net profit. It is primarily because of two factors: first and foremost the horrendous economy is playing havoc on the publishing and marketing trade and secondly, publishers are often not willing to lower advertising rates to sustain themselves during difficult times and this is foolish.”
Kamen expects that the recession will continue to force closures of hundreds of print media companies over the next twelve months but does believe that niche media properties and online titles will have a better chance of surviving and ultimately growing in the immediate future.
For more information visit www.kamengroup.com
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Posted by News LI Editor · Filed Under Business
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