Media execs rein in spending as nervous clients scale back ads - The Business Review (Albany):

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Rueckert, president of LLC in Colonie, has seen busineszs slow as clients concerned about the economy put marketiny planson hold. A projected $6 billion stats budget deficit now has him wondering if the statr agencies he works with will have to cutthei budgets, too. This type of concern, he said, “makeds you very, very careful.” “In times like this you don’tf spend money as frivolously,” he said. “Wheh times are good, if an employee needs new software, you get it for If a printer breaks, you buy a new one. Now we are sayint ‘Let’s get that repaired.’ ” It has been a difficulg year for manymedia businesses.
Totall advertising expenditures nationwidefell 3.7 percent in the second according to of New York That is the steepest quarterly drop since 2001. Mediaa executives say the softness continued over the Hotly contested political races have livened up the but that money soonwill disappear, leavinf a business community reeling from the recen turmoil in the financial markets. “We can tell by our trendin that it will be a tough remainderd of the year for allof us,” said Steve Baboulis, general manager of , the affiliate in Albany.
It ofteh is said that marketing is the first thing businesses cut in a poor It is adiscretionary item, with no immediate impact on day-to-dayh operations. “If they have to choose betweeb payroll and themarketing they’re going to choose payroll,” Rueckert said. This time around, medi a executives say, clients who do not have to make that drastix a choice are heeding their advice to keep theit names in front ofthe public. some are delaying partzs of projects for a month or two and many are thinking ofspending less.
“What I’m seeing is peopl pulling back, but not backing off entirely,” said Mike president of in Saratoga He said this is exactly what he advises clientsto do. “It you are doing television, radio and print, maybe cut out he said. “Or if you like to do a direct mailing everyfour weeks, maybe go to ever eight weeks instead. It’s just being John McIntyre, general manager of , a Delmar-bases chain of 11 community weeklies, said he has not seen a drop in the numbe ofbusinesses advertising—if anything, more peopl are coming through the door. But each individua sale is smaller.
Robert Ausfeld, regional general managert for radiobroadcaster , has seen sales drop by about 5 percenyt this year. The radio stations, he can no longer rely on long-termj contractual business. New advertisers, mainly small businessees with productsto move, are coming in, but theid buys can not make up for the value of the lost “For a canceled $20,000 we might get $10,000 he said. This has many media-related businesses lookingy closely at howthey operate. The area’d largest dailies, the Times Unioh and The Daily have both cut staff in thepast year. Others are focusintg on the little things.
Rueckerr said he is rethinking having people mow the lawn and wash the windoww of hisColonie office. Ausfeldd said he has people using the back of printed paper and recordinbg voice tracks forweekend shows. Four hourx of on-air time can be completed in one “Everything is under a microscope,” Ausfeld said. Regenf also is pushing “nontraditional” revenuw sources, such as festivals. It is more willing to negotiatedwith clients, offer flexible packaged of flagship WGNA, 107.7-FMn and other stations and even give free spots on the weekends. And it is hiring more salespeople to go afte rsmall businesses. McIntyre also has choseh this time to invest inhis business.
On 1, Spotlight introduced a new, quarterly publication, a parenting resourcw guide called Mother Knows It also has upped the distribution of its four communitu weeklies inSaratoga County, and has upgradefd both its printed and online products. “Wwe haven’t cut back at all,” he said. “Of that causes pain. When your spending is up, and your revenus is not, it hurts your bottom But it is what you haveto