The RisingCan't see nothin' in front of meCan't see nothin' coming up behindI make my way through this darknessI can't feel nothing but this chain that binds me…

…On my back's a sixty pound stoneOn my shoulder a half mile line

Come on up for the risingCome on up, lay your hands in mine.

—Bruce Springsteen

It’s tough out there…

Media Spending???Robert Coen

MAGNA Global

“The outlook is not good.”

Date 2008 2009Barclays Capital Oct. 2008 -3.6% -5.5%Bernstein Research Aug. 2008 3.7% 3.6%BMO Capital July 2008 1.8% 1.9%Carat Insight Aug. 2008 2.1% 3.1%eMarketer Aug. 2008 1.9% 1.1%Jeffries & Company Sept. 2008 2.0% 0.0%UBS Oct. 2008 2.5% -6.0%MAGNA July 2008 2.0% 3.1%Myers Publishing Oct. 2008 -1.3% -4.0%Wachovia Oct. 2008 -0.8% -0.8%ZenithOptimedia Oct. 2008 1.6% 0.7%

Media Spending Growth in the US

First Half 2008

-1.6%

53% of US marketers expect reduced ad budgets over the next 6 months (July/Aug ’08)

Source: Association of National Advertisers, July/August 2008; among 100 ANA-member marketers

Epsilon(Summer ’08):

65%MarketingSher

pa(Sept ’08):

70%

MarketingProfs(Oct ’08):

31% say they’ve already cut!

What are marketers seeing for their

traditional media budgets?

48% will cut—MarketingSherpa, Sept. 2008

(n = 400 large companies)

59% will cut—Epsilon, Sept. 2008

(n = 175 CMOs and senior marketers)

85% will cut—MarketingProfs, Oct. 2008

(n = 600 marketers)

“Where’s the growth?!?”

US online ad spending growth for 2008

20.3%

20.0%

17.4%

16.9%

15.0%

13.8%

13.8%

13.8%

13.0%

11.6%

Bernstein (Aug '08)

Collins Stewart (Oct '08)

eMarketer (Aug '08)

Barclays (Oct '08)

Jeffries (Sept '08)

Myers (Oct '08)

MAGNA (Oct '08)

JP Morgan (Sept '08)

EITO (Oct '08)

ThinkPanmure (Oct '08)

Source: eMarketer, Nov. 2008

15.2% growth in 1st Half, per IAB15.0% growth for Microsoft in Q322.0% growth for Google in Q3

Double-Digit Gains

US online ad spending growth for2009

19.4%18.0%

16.9%15.7%

14.5%14.1%

13.5%13.5%

12.0%10.0%

3.0%

LiveRail (Sept '08)

Collins Stewart (Oct '08)

Bernstein (Aug '08)

JP Morgan (Sept '08)

eMarketer (Aug '08)

Barclays (Oct '08)

Myers (Oct '08)

MAGNA (Oct '08)

Jeffries (Sept '08)

Wachovia (Oct '08)

ThinkPanmure (Oct '08)

Source: eMarketer, Nov. 2008

???

???

US online ad spending growth for2009

16.9%

15.7%

14.5%

14.1%

13.5%

13.5%

12.0%

Bernstein (Aug '08)

JP Morgan (Sept '08)

eMarketer (Aug '08)

Barclays (Oct '08)

Myers (Oct '08)

MAGNA (Oct '08)

Jeffries (Sept '08)

Source: eMarketer, Nov. 2008

Double-Digit Gains

63%

62%

31%

72%

26%Forrester (Spring '08)

Advertiser Perceptions (May '08)

MarketingSherpa (Sep '08)

Epsilon* (Sept '08)

MarketingProfs (Oct '08)

% of marketers planning to increase their online ad budget – despite the recession

*63% of (175) CMOs said they had increased their online budgets in the past year

N = 333

N = 1,811

N = 400

N = 175

N = 600

55% of global marketing execsplan to cut spending on traditionalmedia in order to fund increased

online efforts (June 2008)

Over 70% of global marketingexecutives today believe online will

determine how major campaignsare planned and executed

Over the past

18 months, ROI for

online has surpassed

that of broadcast!

IT’S TOUGHOUT THERE.

You have 4 options...

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