TNS reports that financial-sector ad spending rose 10% in Q3, despite the horrific mortgage bust that began in late August, the Post says. We and others are expecting to see a falloff in ad spending as the financial sector and broader economy weaken, so at first blush, this seems bizarre. But it isn’t.
If financial ad spending is still growing NOW (i.e., if TNS reports in early March that Q4 financial spending was up another 10%), we’ll wave the white flag. Given that the mortgage sector didn’t begin to deteriorate until the end of August, however, the strength in Q3 isn’t surprising.
In September, the consensus was that the August turmoil had been a blip. Now that we know the sub-prime damage isn’t “contained,” we expect financial advertisers are pulling back. In recent weeks, we have heard anecdotes that support this (see below).
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