A Veronis Suhler Stevenson (VSS) report has painted a very bleak picture of recent times in the US communications industry, according to an article on MediaPost.
Poised for recovery However, there does seem to have been a slight turnaround at the beginning of this year. Veronis says that its report shows an ‘industry under duress’, but an industry that is ‘poised for recovery’. VSS is forecasting a 2.9% growth in revenue for US media this year and an annual growth rate of around 5.5% until 2006.
However, no new advertising dollars are currently entering the market, in contrast with the last five years which saw substantial revenue sources from the internet and telecommunications emerge.
US 2002 Advertising Forecasts | |
Year on Year Growth (%) | |
Network television | 2.9 |
Cable and satellite | 9.5 |
Local radio | 3.0 |
National radio | 4.0 |
Newspaper | 3.2 |
Internet | 4.1 |
Total | 2.9 |
Source: Veronis Suhler Stevenson, August 2002 |