With Merrill Lynch sold, Lehman gone and AIG teetering, what’s going to happen to the advertising market?
Not much, at least initially. Business and financial magazines and Web sites will feel some pain, but Merrill and Lehman aren’t big advertisers beyond the trade press. AIG (AIG) is a bigger spender, but has cut back in recent years, AdAge reports.
Bank of America (BAC) is a huge consumer advertiser and may spend more in the short term as it educates the public and the marketplace on what its acquisition of Merrill Lynch means. But that initial spurt could presage declines later as it looks for efficiences.
Another impact will be on events and other sponsorships. AIG’s shirt sponsorship deal with English Premier League giant Manchester United is the richest of its kind, worth $25 million in 2008. Merrill has in the past sponsored high-end sporting events watched by those who might avail themselves of wealth management services, like the PGA Tour and the ATP Tennis Tour.
2007 U.S. ad spending, according to Nielsen:
Merrill Lynch: $37.1 million
Lehman: $1.2 million
AIG: $57.9 million
Bank Of America: $406.2 million
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