Televisa expects a fall in advertising revenue as a result of a reduction in advertisers’ budgets following Donald Trump’s victory in the United States presidential election.
Salvi Folch, Chief Financial Officer of the Mexican media giant told during the Morgan Stanley TMT conference in Barcelona that the company is preparing for a drop in advertiser spending this year, according to Bloomberg.
Televisa sells advertising in advance, with no possibility of reversing or canceling the operation. Given the new landscape, the company could even change its traditional marketing model. “Now, most Mexican companies are reviewing their budgets, and engaging without flexibility can be a challenge,” Folch admitted.
The executive said that the uncertainty after Trump’s victory means “there is less visibility for next year and Televisa has already heard from advertising agencies that customers can slow down negotiations for the rest of 2016”.
“We are extremely optimistic about the Mexican economy, but this will have an impact and is impacting our customers; is affecting our decisions”, he added.