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Cost of TV advertising will fall to 'lowest level for a decade'

Prices for television adverts will fall to their lowest rates for over a decade, according to forecasts from media agency Zenith Optimedia.

The agency predicts that -in real terms- by 2009 television advertising will be 40% cheaper than in 1987.

On average, a 30 second advertising slot now costs £4.81 per thousand adults, the same as in 1994 in absolute terms and almost 30% less than it cost in 2000.

This forecast follows a survey by PwC revealing that in over 65% of cases a business that reduces its advertising more than its competitors will see its brand value plummet and the willingness of customers to buy its products decrease.

Many small firms are currently reducing their advertising and marketing budgets in an attempt to cut costs.

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Post Date: November 11th, 2008