Analytics agency, Billetts, recently forecast that 2009 advertising revenues will be 18% down year-on-year for both national press and consumer magazines.  Television advertising revenues will be down 14% (£475m lower than 2008) and radio and outdoor revenues are down too.

20,000 followers of @themediaisdying on Twitter are receiving minute-by-minute accounts of the latest redundancies, mergers and closures as the media industry as we know it changes beyond all recognition.  So what’s going on?

Most media relies on advertising for it’s funding, for example: newspaper adverts pay for the journalists who write the stories people want to read – the reason they buy the papers and magazines.  Advertising breaks on TV pay for the broadcasting rights and cover the cost of providing the programmes people want to watch.  It’s always been perceived as a necessary evil – we have to receive the advertising in order to get the news / the programmes we want.

But, in recent years, this business model has changed – thank goodness.  With changes in technology, people can now fast-forward adverts on television and source their news online via the BBC or their favourite newspaper.  The power is back in the hands of the consumer – which is where it should be to my mind.  The market has also fragmented, with more suppliers competing for our attention, for example the plethora of new digital TV channels and new magazines / online newspapers and blogs.  As a result, big businesses are cutting their advertising revenues, because the returns are reducing.

And that’s where your business comes in – do you monitor return on investment from your advertising?  If so, is it reducing?  Could you be spending your money in a different area and getting better returns?  If you don’t know, it’s definitely time you started finding out.  Check back tomorrow for some tips on how you could cut your advertising spend.