MUMBAI: Year 2010 shall witness a slow advertising rebound, predicts Credit agency Standard & Poor‘s.
Entitled "Economic Factors Point to a Long Trudge Out of the Recession for US Media and Entertainment", S&P states that there was a high number of credit downgrades last year and also suggests further that there are no assurances of a near-term resumption of industry growth.
The study hints to the fact that in 2010 more downgrades are likely, especially for companies with already-strained liquidity.
As far as advertising is concerned, S&P notes that there has been a "downside overreaction" during the global slowdown as the ad-spending contraction has exceeded the GDP contraction.
This is expected to turn around in the rebound as S&P predicts a 2.35 per cent of real GDP growth in 2010, and estimates that this would decipher into a growth of 4.2 per cent growth in ad spending. The growth, S&P notes, will be primarily pushed by the midterm elections and the Winter Olympics.
S&P anticipates many media subsectors to show growth in the second half of the year.