When the news from Wall Street is gloomy it is easy to forget that we are in the communication business, not the content publishing business. When major companies have messages they need to communicate our financial fortunes can rise independent of what is going on in the general economy.
Just before the meltdown on Wall Street the financial advertising sector was the largest in the US. In the aftermath of all the restructuring, a lot of companies will have new stories to communicate. According to Heidi Dawley in a recent post on Media Life:
"...against the worry and gloom there's a bright side to the credit crisis for the media economy.
Provided the crisis doesn't deepen--certainly a vital worry--ad spending ought to rebound as the financial services industry responds to the restructuring of the industry and shifting of assets from failing institutions like AIG and Lehman Brothers to healthy institutions.
While smaller banks and insurance companies may still fail, and the credit mess still has a long way to play out in its impact on the entire U.S. economy, the sense, at least for now, is that the worst of the collapses are behind us, that no new AIGs lurk in the shadows.
Going forward, there are solid reasons to expect a rise in ad spending in the financial service sector."
For one, major retail players, the banks and insurance companies, need to put out the message to consumers that they are healthy and conducting business as usual.
For another, competitors of those troubled giants like AIG and Merrill Lynch have every reason to pump up ad spending to steal away customers, playing on fears that sticking with those giants will put them at financial risk. "
Makes you think!