2020 Forecasts Show Why Media Buying Agencies Are More Necessary than Ever

Posted by Alan Reisberg | Posted on January 20, 2020

By all accounts, 2020 may be a difficult year in the advertising industry. To start, GroupM, the world’s largest media buying firm, says that next year will see a global slowdown in ad spending. Their report cites a sluggish global economy as one particular reason for the slowdown. Interestingly, the report also predicts that digital advertising will grow approximately $30 billion next year, or about 11 percent. In 2019, TV ad spending declined 3.6 percent and is “unlikely to grow in the future,” according to the report.

At the same time, another study by the World Federation of Advertisers found that global media prices will go up in 2020 by about 5 percent. Specifically, it predicts a 6.6 percent increase for television prices, a 4.2 percent increase in online display, and a 6 percent increase for online video.

One reason why prices might be going up, at least for television advertising, is the major shift to streaming services. While there are new opportunities with new platforms, the general stock of available ad units appears to be decreasing. For example, NBC Universal said last year that it would cut the volume of ads it runs during original primetime programming by as much as 20 percent. Of course, the law of supply and demand are partially at play here, and it certainly has an impact on prices.

What do these predictions mean for advertisers? Well, one thing is for sure: Those ad budgets aren’t going to go as far as they usually do, at least not without some juggling. Advertisers may ultimately pull back when facing higher prices, making the slowdown prediction a reality.

It’s times like these, though, that companies need to turn to professional media buyers. Professionals (like us) can help provide a more finessed analysis of the marketplace and make better recommendations. What’s more, we maintain relationships with networks and other media outlets, and can often negotiate lower prices.

So, if you’re feeling a little pinched with higher prices, contact us. We’re happy to work with you to make sure your budget continues to be effective, regardless of what the market is doing.

Testimonials

What they're saying

I had the pleasure of working with Capital Media in a previous job, so when I was ready to run a brand campaign in my new company, I only wanted to work with Alan Reisberg and his stellar team. Not only does...Read more

Rebecca Chanin, Marketing Director, JK Moving Services

It is so refreshing to work with an advertising agency that sees the value in breakthrough visibility, out of the box originality, and fully integrated marketing solutions. At a time when our industry is...Read more

Dahn Burke, Digital Sales Manager, W*USA-TV | Gannett | CBS |

The Jiffy Lube Washington Area Co-op has worked with Capital Media for over 20 years and for good reason. Their media buying strategies, negotiation skills, and exacting attention to detail on follow-up to...Read more

Dale Smith, President, Jiffy Lube Washington Area Co-op

Capital Media played an important role in the effectiveness of our Gulf Coast Spay/Neuter Project, a marketing campaign to reduce pet homelessness in Mississippi and Louisiana. Their expertise coupled with...Read more

Cory Smith, Senior Director of Pets for Life, The Humane Society of the US

For over six years, Alan Reisberg and the team at Capital Media have played an integral role in the success of our B2B and B2G advertising initiatives. As a small business in a very competitive marketplace, we...Read more

Juli Zeffert, Director of Marketing and Communications, Iron Bow Technologies

Over the past 20+ years in my dealings with Capital Media I have found them to define professionalism. Our group members are from a diverse professional background, with large variations in advertising...Read more

Carl Merewitz, Steering Committee Member, Washington DC Area AAMCO Dealers

Capital Media has been doing business with Comcast Spotlight in Baltimore for quite a few years and we value them as friends as well as business partners. I have always appreciated and respected the ability of...Read more

Jim Dolan, Regional Sales Manager, Comcast Spotlight, Baltimore

Cap Media, best f**ken g-d damn media buyers in the most important city in the world! If you’d prefer, I can slap together a more boring testimonial from the brain – rather than from the heart.

Dana Siller, Director of Corporate Marketing, Jerry’s Subs & Pizza

I have used Capital Media for the entire 22 years I have been at the helm of Maryland International Raceway. They have their hand on the pulse of the media in the Washington market and I know my events receive...Read more

Royce L. Miller, President, Maryland International Raceway

Capital Media has been a valued partner of ABC 7/WJLA-TV’s for many years. Capital Media has earned a solid reputation as a media savvy, client-centered agency, focused on results. They approach their...Read more

Tim Dotson, Sales Manager, WJLA-TV

Our experience with Capital Media has been outstanding. It transcends a typical vendor relationship – being more of a partnership. Alan is genuinely vested in the performance of our business as is evidenced...Read more

Steve Freishtat, President, Next Day Blinds Corporation

I couldn’t imagine doing my job without Capital Media. They are true partners providing guidance and advice every step of the way. I trust them completely and couldn’t imagine implementing our marketing...Read more

Rich Handloff, Director of Consumer Marketing, The Washington Post

Alan’s experience comes through in every discussion, yet he delivers strategies like a trusted family doctor, rather than a slick agency guy. He’s flexible, professional and always working to get more for...Read more

Brad Buyce, EVP, Coyne