THREATS

CUTS IN ADVERTISER BUDGETS as advertisers continue to take a autious, wait and see approach and look for cheap COMPETITORS CUTTING AD RATES which is putting real pressure on yields. MIGRATION OF AD BUDGETS ONLINE is more of a B2B than consumer issue, especially in classified advertising, but is also impacting very heavily in regional newspapers. ADVERTISER CONSOLIDATION is simply reducing the size of the prospect pool. STAFF QUALITY. The need to improve staff quality is seen as an opportunity (see above), but is also a threat with some publishers reporting a real skills shortage. Yet this is not just about skills, but about attitudes We need to challenge our own thought processes and the way we do things. REDUCING CPMs. The competitive market is forcing ad yields down.

ADVERTISING PLANS
Advertising is central to the marketing of the US food supply. Marketing is defined as an activity an organization engages in to facilitate an exchange between itself and its customers/clients. [25] Advertising is one type of marketing activity. [25] The US food system is the second largest advertiser in the American economy (the first being the automotive industry) and is a leading buyer of television, newspaper, magazine, billboard, and radio advertisements. [26] The reasons that the food advertising market is so large include the following: 1) food captures 12.5% of US consumer spending and so there is vigorous competition, 2) food is a repeat-purchase item and consumers' views can change quickly, and 3) food is one of the most highly branded items, which lends itself to major advertising. [26] Over 80% of US grocery products are branded. [27] Advertising expenditures for US food products were $7.3 billion in 1999. [27] In 1997, the US advertising expenditures for various foods were: breakfast cereals $792 million; candy and gum $765 million; soft drinks $549 million; and snacks $330 million. Total expenditure for confectionery and snacks was $1 billion. [26] In contrast, during the same year, the US Department of Agriculture spent $333 million on nutrition education, evaluation, and demonstrations. [26] Advertising budgets for specific brands of foods, beverages, and fast food restaurants are also revealing (Table 1). It is unclear how much money is spent on food advertising specifically directed at children and adolescents, but estimates are available for overall youth-oriented advertising in the US. It is estimated that over $1 billion is spent on media advertising to children, mostly on television. [28] In addition, over $4.5 billion is spent on youth-targeted promotions such as premiums, sampling, coupons, contests, and sweepstakes. About $2 billion is spent on youth-targeted public relations, such as broadcast and print publicity, event marketing, and school relations. In addition, roughly $3 billion is spent on packaging especially designed for children. [28]