I've written about some ways to try and anticipate some of the market problems
that might come up during a recession, but it's also worth examining what some experts see for the next year or two. MediaDailyNews has an interesting article on what recessionary impact might be on various types of media distribution
. Some of the conclusions are obvious, and some are surprising.
Traditional media gets hurt
There's something you could have predicted easily. The credit markets are down as is consumer confidence, and there are "lower sales in the automotive, technology, and packaged goods categories." That means pressure on ads and ad agencies - and the places that the ads run:
TV and consumer magazines should be able to hang tough, say industry observers--but it's not a pretty picture for radio and newspapers.
TV limps along
There might be a little loss of ads on television, but not overwhelming. Not like most freelance writers get directly affected by that.
Magazines are a mixed bag
Samir "Mr. Magazine" Husni, chair of the University of Mississippi journalism department, and one of the leading experts on the magazine market, thinks that successful titles targeting luxury markets will probably be fine. (UPDATE: I added the successful with the intent of noting that some luxury market magazines simply won't make it. And here's a blog post at the Wall Street Journal
making the same point.) Mass market magazines will see a drop in ads and might well increase news stand prices - meaning a 6 to 12 month slump in news stand sales, which, I'll note, can affect how much advertisers are willing to pay. So, expect many titles to get thinner or push shorter article lengths. However, in an interesting twist, Hasni expects new titles to launch. Surprised? Apparently Fortune, Esquire, and Entertainment Weekly all launched during recessions. It's easier for new publications - if they have the funding, I'd think - to compete with established titles. Then when the market improves, the new magazines float upward as well. But I would emphasize my well-funded
addition. If ad markets are soft, it's much harder to bootstrap to success. Be sure that new titles are from well-heeled companies.
Newspapers in pain
They were having trouble before, and the recession is just going to make it worse. I'm already hearing stories from some writers who are finding that their newspaper clients are reducing freelance budgets and even asking the writers to reduce their fees. This will only get worse with the ascendancy of Internet publishing and ads. If you've been doing work for newspapers, now is really the time to reconsider your business model and see whether there might not be a better way for you to go.
Radio markets sound bad
The market for freelance writing on radio is pretty poor normally, so as radio stations take a downturn along with papers (though maybe not as extreme), it's going to get worse. Funding for NPR is tighter as well. I'd classify this as a "
Analysts figure that the Internet is going to scream along even more strongly during a recession. According to Jupiter Media, so says an Ad Age story, alternative media spending has jumped 22 percent over last year
. The analyst firm is forecasting another 20 percent jump by next year. Part of that is because advertisers have less confidence in traditional media - and part of that is because marketers cannot easily show how effective particular outlets or campaigns are. However, what the heck does alternative markets
mean? That gets tricky: interactive marketing; banner ads; behavioral targeting (following someone's activities on the web); and even branded entertainment, which includes "event sponsorship and marketing, paid product placement, advergaming and webisodes." As MediaDailyNews notes, it's unclear exactly where any of that money will end up - and so, it's unclear how much will translate into sponsoring content that needs writing. Much of it goes into search advertising, and that only drives content indirectly. But it's important, and even people doing straight editorial online need to understand the basics of search engine optimization as it applies to writing. That means a lot more than "stuff in as much keywords as you can."
Labels: economy, markets, strategy