How Local Media Feel Recession

Unlike the last recession around 2001, when local markets stayed relatively insulated from the fallout of the dot-com bust, they are anything but immune to this one. And that's bad news for local media. That could be a particular problem for local media, whose advertisers view advertising differently than big national ones: They often see advertising less as a strategic investment and more as a necessary evil. Historically, local markets have been less susceptible to economic cycles because they are driven by small- to medium-size businesses that don't have public shareholders to please and, thus, have less pressure to cut costs such as advertising. But given the broad implications of the credit market, "this is one time when a national situation is driving a local outcome probably more dramatically than it would ordinarily," said Steve Ridge, president-TV and exec VP at Frank Magid Associates.