How Wall Street's Black Sunday Will Affect Ad Spending

The news that three well-known firms -- Lehman Bros., Merrill Lynch and American International Group -- are either ceasing to be, being purchased or facing concerns about raising capital rocked Wall Street but so far has had surprisingly few repercussions on Madison Avenue. In fact, advertising-industry analysts are predicting little short-term fallout -- though the longer-term effects on consumer confidence could be a lot more serious. There were few immediate fears because Merrill and Lehman are tiny players in the world of media spending. Lehman's spending was trimmed in recent years, falling to $1.2 million in 2007 and accounting for only $501,900 in the first half of 2008, according to TNS Media Intelligence. Merrill, likewise, is not a huge spender: $37.1 million in 2007 compared with $38.2 million in 2006. Moreover, by absorbing Merrill Lynch for $50 billion, Bank of America looks to become an even bigger player when it comes to marketing spending. But there are still worries about the already hurting print and business-to-business sector, which are expected to be roiled by Lehman's demise, Merrill's sale and AIG's woes. Media and marketing executives looking ahead though, think the pain could easily become more widespread. Given how much damage the media and entertainment sector has already sustained during this economic downturn, though, most veterans don't see the latest news as a particular reason for despair. It certainly proved a major distraction during the day as execs dealt with fall TV and movie launches and prepped for Sunday's Emmy Awards.