More bad economic news from Google and fashion magazines has been reported, as both indicate fresh new advertising drops in orders and sales. Google claims that advertising revenues have now hit their lowest point since the dot com bust a few years ago. And now industry sources for advertising in major fashion magazines claim a staggering 50% drop in September issue ad orders.
For Google, the fresh cutbacks indicate further belt-tightening of businesses. And for fashion magazines, the fresh round of advertising cutbacks mean less marketing for back to school clothes for high school and college aged females. Neither trend means that the economy is pulling out of this global recession soon. In fact, both figures could indicate that this recession is continuing to deepen and worsen in the short run.
On the other hand, if advertising revenues had improved, it would have been a very good indicator that this recession is slowing and turning around.
A further problem for the fresh advertising shortfalls it that it could result in further job layoffs, or even force some fashion magazines to close up shop as advertising is critical for print publications to stay afloat. Retailers are apparently expecting a slow Fall season as the fresh advertising cutbacks seem to indicate.