Advertisers Lose $500 Million Due to Superstorm Sandy

Tuesday, 06 Nov 2012 09:11 AM

By Peter Moses

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Superstorm Sandy left another victim in its considerable wake, the U.S. advertising community, which expects a whopping loss of $500 million in lost ads due to the enormous storm and its aftermath, according to Advertising Age.

Brian Wieser, senior research analyst at media research firm Pivotal Research Group, said Sandy would cost that much because so much of the eastern United States is still without power.

That $500 million figure is due to “interruptions in local TV and radio programming and also factoring in decision-making by media buyers in the wake of the storm,” according to Ad Age.

Editor's Note: You Owe It to Yourself to Know What Obama and Bernanke Are Hiding From Americans

Wieser lowered the U.S. ad forecast to a 0.5 percent decline in the third quarter, a 1.4 percent decline in the fourth quarter and zero growth for the full year, from an earlier forecast of 1.2 percent growth for the third quarter, 0.9 percent growth for the fourth quarter and 1.4 percent growth for the full year.

Advertisers pulled back their ads because they realized they would be spending money without being able to reach viewers, not a good reason to spend cash, according to Ad Age.

In addition, leading holding companies like WPP and Publicis Groupe lowered their growth forecast numbers.

While many people used smart phones to learn what was going on in their communities during and following the storm, there was no indication advertisers flocked to social media to pick up the slack.

Elected officials and others used social media to get the word out where people could go when they didn’t have power or access to everyday things like food and water. Some for-profit companies tweeted and posted information on free services being offered, like use of showers and free batteries.

Shelters and other service organizations turned to Twitter and other social media and victims with battery life on their phones shared horror stories, cries for help and photos of the devastation unfolding before their eyes.

Twitter and other social media were also acting as town crier, with people sharing tips on where to buy gas, pick up dry ice provided by utilities and local government and what stores were open or closed.

Editor's Note: You Owe It to Yourself to Know What Obama and Bernanke Are Hiding From Americans

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