When the Federal Reserve cut interest rates by a half point last Wednesday — its first rate cut in four years — broadcasters breathed small sighs of relief. Their biggest category, automotive, has been suppressed because high interest rates have stifled consumer car purchases, and that in turn has stifled automotive advertising. The rate cut also should positively affect other industries that involve long-term purchases, such as real estate and finance.
“We expect 2025 to be better than 2024 [in terms of spending on core categories],” says Nicole Ovadia, VP of forecasting and analysis at BIA Advisory Services. “We expect interest rates to come down and that will help with real estate and auto. We’re also expecting uncertainty in the marketplace to be gone once we’re post-election. All of the political noise will be gone from the airwaves. In general, we expect things to open up economically and for there to be more positivity.”
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