Albany Expects to See Increase in Advertising come 2012

As the year 2012 keeps creeping closer to us, Townsquare Media of Albany, New York has announced that it is looking to hire some advertising employees, according to The Business Review.

“We’re hiring,” said Dan Austin, general manager of Townsquare, which also owns four local radio stations.

The reason for the hiring is more than likely because of a competitive market instead of optimism as to how much money clients will be spending on advertising in 2012. Austin explains that local television stations, radio stations, and newspapers are going to see growth, but “in the very low single digits next year, 2 [percent] to 3 percent max.”

Austin also said that the year 2011 is shaping up to be a very flat year, and it all depends on how the holiday season finishes in terms of advertising dollars.

“It was not what I would call the most memorable year in advertising,” he said.

Experts in the economic and advertising industries agree with the point made by Austin. National growth has been estimated to be at 1.6 percent for 2011 according to Magnaglobal. Magnaglobal is the media research division of Interpublic Group of Cos., based in New York City. Magnaglobal had originally predicted the national growth to be at 4.8 percent in 2012 but has since lowered their estimate back down to 2.9 percent. Magnaglobal cited the reason that a “slowdown in real personal consumption expenditures, manufacturing activity, and ongoing problems in the labor and housing markets.” Magnaglobal also estimated that the total amount of advertisement spending would hit $178.5 billion in 2012, which is much lower than the pre-recession level of $206 billion back in 2007.

The brightest spots in the industry are going to be national cable advertising, online advertising, mobile advertising and broadcast television advertising according to Magnaglobal. The general manager of WNYT/Channel 13 from Albany, Steve Baboulis, claims that he has optimism for 2012 because “we sense the local economy is stabilizing.” One of the reasons for the optimism in 2012 is the fact that the presidential elections will increase political advertising. WNYT is also an NBC affiliate, which means it will air the Summer Olympics and the Super Bowl in 2012.

Outdoor advertisers are expected to have a decent year in 2012 as well according to Magnaglobal. The company predicts that outdoor advertising spending will increase by 4.4 percent in 2012. The general manager of operations for Lamar Advertising, Matthew Duddy, claims that revenue increased by 13 percent in 2011.

“I wish the year didn’t have to end,” he said.

Executives from advertising agencies said that clients are beginning to set their budgets for 2012 now, so the industry should have an idea within a week or two regarding 2012 spending.

“Our clients are increasing their spending,” said Mark Shipley, the president of Troy-based Smith & Jones. “Not significantly, but I don’t think people are expecting the world to come to an end.”