Abstract

This paper outlines and analyses several major trends in marketing, retail, media and consumer buying areas that have been structurally impacting advertising expenditures in mass media. Based on this analysis, the author provides a reasoned outlook on why media advertising expenditures are unlikely to witness any dramatic resurgence in the US even after the recession is over. The implications gleaned from analysing various trends is used to argue that the prognostications made by some advertising and media executives are overly optimistic and rely on linear ways to project media advertising expenditures in the future. In contrast, the author attempts to show how and why many trends (obvious in the 1980s) are impeding the growth of media advertising in the US and are likely to have a far greater impact in the 1990s.

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