When the economy is bad, people cut back. I know, because at $4.19 a gallon, gas is too expensive for me to use to drive to the local Panerra to have lunch with a friend. I rode my bike. Yup, it's 90 degrees out with 90% humidity. Yup, I was a sweaty mess when I arrived, and had to bring another shirt. But, it's part of cutting back when times are tough.
Businesses cut back too, and one of the first places to feel the ax is advertising and marketing. Radio is feeling the pinch to an even greater extent than forecasters thought.
According to a new study by the Radio Advertising Bureau, local advertising sales was off 10% in June compared to last year. National radio plummeted 13%. Of course, much of this is an indication of radio advertising being perceived as less efficient than other forms. Posting of actual ratings performance for advertisers to actually evaluate (something which radio has never done) may help confidence in the future. But, for now, buyers aren't buying.