Magna forecaster Robert J. Coen predicted Monday that the economic turmoil across the U.S. media industry may be strongly felt by local outlets, in particular newspapers, Media Life Magazine reported Tuesday.
Coen said that this year, advertising expenditure may surge by 0.1 percent for national media and by 9.1 percent for local news sources. However, in 2009, national outlets may see a 3.0 percent drop in ad spend whereas local sources may experience a 7.6 percent fall.
Ad expenditure on local papers may slow by 16 percent in 2008; while nationals may see a 10 percent drop. Next year, national papers may decline by 10 percent while locals by 12 percent, according to Media Life Magazine.
"National marketers have continued to reduce advertising activity in most traditional media as the year has unfolded and consumer spending has dropped," Coen said. "The trends in local marketing spending are declining even more."
However, local newspapers may also be affected because of evolving media consumption habits, in particular with regard to the increasing role of the Web in regional advertising, according to Media Life Magazine.
Local online ads have been increasing over the past few years as local companies shifted focus towards the Internet. Measurement group Borrell Associates predicted earlier this year that local ad spend would jump by 47 percent in 2008 but eventually slow down to a 9 percent growth in 2009.

