Bleak Outlook for Ad-Sales in 2007

Traditional media may have to make some big adjustments, very quickly, as the outlook for ad-sales worsens:

“Not only will marketers continue to shift dollars from traditional media to emerging venues such as the Internet — possibly at a slightly reduced rate — but audience fragmentation will make it harder for media outlets to win price increases.”

Online advertising looks peachy, but not without it’s own questions:

“While online video is likely to have the most impact on Internet spending in the next few years, another factor will be whether marketers embrace emerging techniques such as user-generated content and viral advertising. Coming up with appropriate techniques for advertisers, particularly big conservative marketers relatively new to online advertising, is “fantastically difficult,” says Adam Smith, GroupM’s futures director.”