Financial Times FT.com

Media hit by woes of biggest ad buyers

By Joshua Chaffin and Nicole Bullock in New York

Published: August 4 2008 18:11 | Last updated: August 4 2008 18:11

The collapse of the US motor industry is rattling media companies as they brace for further pull-backs from their biggest advertising patrons.

Reeling from high fuel prices and a slowing economy, vehicle makers could reduce their advertising spending by as much as $3bn this year, according to Sanford Bernstein & Co. Overall, Bernstein is predicting that car company spending will total about $15bn, down from the record $24bn in 2004, and equivalent to 1999 levels.

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