The report also makes a number of predictions by media sector, as shown here.
Magazine publishing Awaiting a global advertising and economic rebound, magazines will be hurt in the near term, says the report. The internet will help publishers attract subscribers and a faster growing economy will boost advertising in 2005 and 2006. For the five-year forecast period, global growth will average 2.7%, with spending reaching $88.4 billion by 2006.
Filmed entertainment Spending worldwide will be fueled by strong box office receipts, boosted by the expansion of local productions. DVDs will continue to boost the home video market, but the sector will be suffer from the effects of piracy. The filmed entertainment industry will expand at a 5.7% CAGR, increasing from $59 billion in 2001 to $79 billion in 2006.
Television networks (broadcast and cable) Projected advertising rebound, teamed with new channel launches, will drive growth. Canada will experience the greatest growth rate – 8.7 percent – while US spending is expected to reach more than $54 billion by 2006. Globally, television networks will peak at $144 billion in 2006.
Internet advertising and access spending This will be the fastest growing segment over the next five years, expanding by 12.1% CAGR to reach a total of $94 billion in 2006, up from $53 billion in 2001. The principal drivers will be increased broadband availability and rising online penetration, while a strong ecommerce market will lead to a rebound in online advertising.
Newspaper publishing Newspapers will grow slowly over forecast period due to the weak economy. Recruitment advertising, particularly sensitive to economic conditions, will lead to a further drop in spending in 2002, but will pick up as the economy improves, leading to a return to mid single-digit growth. The sector will reach $186 billion in 2006.
Radio and outdoor advertising Outdoor advertising will be boosted by new technologies that create additional venues and make displays more attractive, says PWC. Meanwhile, digital broadcasting will increase radio audiences and advertising, with consolidation making it easier for advertisers to buy both media. The market will grow from $46 billion in 2001 to $59 billion in 2006.
