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Agency bookings down over fears of second recession

Media agency bookings have slid 1.8% in the month of July, further fuelling fears of another recession in the US, according to new data from SMI.

Spending by the big media agencies fell to $603.1 million last month, down from $614 million in 2010. 

Metro free-to-air television bookings fell 1.8%, from $240.2 million to $235.8 million. Drops have also been seen in regional free-to-air TV, radio and newspapers. Magazines saw the biggest drop, falling 9.2%.

Meanwhile, digital, outdoor and cinema all saw increases, with digital rising 13.6% from $58.2 million to $66.1 million.

The SMI figures are not surprising, given the recent state of the share market, which has seen shares in the nation’s major media companies flatten.

AdNews reported yesterday that major companies such as Fairfax Media, News Corporation, Ten Network Holdings, Seven Group Holdings, Seven west Media and APN News & Media had all seen sinking share prices.

Fairfax’s share price has today hit a new low. After closing yesterday at 86 cents, the company’s price currently sits at 82.2 cents, down 4.42%, the lowest price the company has seen since 1992. 

News Corporation shares are currently at $14.07, down 4.67% on yesterday. Seven West Media shares have taken a rapid dive, closing yesterday at $3.34 – down 3.47% on the previous day – and currently sitting at $3.11 after hitting a low of $3 this morning.

The falling prices are in part due to the uncertainty surrounding the US debt crisis. The Australian share market is having serious troubles, and shed as much as $60 billion in morning trading. 

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