Advertising business of Swiss media and advertising marketers continues to decline
The Swiss advertising market continues its downward trend. As a result, the stock prices of Swiss advertising agencies and media companies are also in free fall. Advertising revenues have been plummeting dramatically since the summer.
The Swiss advertising business is maintaining its downward trend. As a result, the share price of Swiss advertising marketers and media companies is also falling. Advertising revenues have been falling dramatically since the summer. In October, the volume of advertising fell by 15 percent compared to the previous month.
The reason for the declining income in the advertising business is not only the poor economic forecasts, but also the steady migration of advertising volume to the Internet, writes Cash on Friday. Publigroupe, for example, has lost almost 80 percent of its value since the beginning of the year. Internet revenues are also declining, albeit not as much as in print. The online advertising marketer Goldbach Media has also lost over 60 percent of its value. Advertising posters are more crisis-resistant in this respect, as they are comparatively cheaper, as Helvea analyst Chris Burger told Cash.
The advertising market should slowly recover by mid-2009 at the earliest. However, even then only on the condition that the overall economic situation improves by then, Burger continued.
The reason for the declining income in the advertising business is not only the poor economic forecasts, but also the steady migration of advertising volume to the Internet, writes Cash on Friday. Publigroupe, for example, has lost almost 80 percent of its value since the beginning of the year. Internet revenues are also declining, albeit not as much as in print. The online advertising marketer Goldbach Media has also lost over 60 percent of its value. Advertising posters are more crisis-resistant in this respect, as they are comparatively cheaper, as Helvea analyst Chris Burger told Cash.
The advertising market should slowly recover by mid-2009 at the earliest. However, even then only on the condition that the overall economic situation improves by then, Burger continued.






