From Ad Age
Who in the ad industry is afraid of the fiscal cliff?
Perhaps surprisingly, some big marketers such as Procter & Gamble Co. and Unilever aren’t at all publicly — despite prospects for the $607 billion whammy of tax increases and spending cuts due to hit in 2013 to cause a recession. Others, such as the beer industry, appear more afraid of a solution to the fiscal cliff — one that may be heavily laden with new “sin taxes.” But some media companies, already looking at the prospect of difficult comparisons to a relatively weak 2012 that was buoyed by the Olympics and political spending, clearly expect to be the canaries in what might be more like a fiscal coal mine.
One cable-TV sales executive acknowledged that the fiscal cliff was a major topic of discussion for first-half planning. “We have the same concerns as any other business about what happens if there’s an abrupt change to the consumer position in the marketplace,” he said. “It’s a worry for all businesses, especially those in the advertising space. If this happens, we will see a conservative consumer base not spending the money they are spending now.” But he’s optimistic President Obama and Democrats will reach a solution short of the cliff.