explain the changes in business enviroment which has caused advertsing to fall in recent years?

Answer 1

Hi

I feel the biggest reason for this has been the inability of mass advertising to predictably target specific audiences. Due to this advertising has now branched out into specific targeted campaigns. for e.g. if a person logs on to hotmail from lets say Virgina then they would see Virginia related advertisers.

Cheers

Shivaji Sengupta

Answer 2

Well, according to Fact Pack 2006 (a supplement to Advertising Age), total advertising spending in media is growing (7.5% in 2004). Top advertisers are also only increasing their spendings, excluding Sony Corporation, which had a minor decreas by 1%.

These are figures from 2004 and 2005, but I would call these years rather recent. So I can't say that I agree with the statement "advertising to fall in recent years".

Answer 3

The scope of your question is way too large.

First, advertising and communication in general are the most easy thing to cut when you are on a budget.

And the change in medias (less paper more web) has introduced new forms of advertising. So rather than a fall, I would suggest that this industry is changing at a fast pace. Some adapt, others don't.