US advertising expenditure is predicted to increase by 5.1% in 2005, to $150.5 billion, following the estimated growth of 10.6% in 2004, according to forecasts released by TNS Media Intelligence.
TNS Media Intelligence estimates quarter-by-quarter growth of 6.9% for the first half of 2005, slowing to 3.5% in the second half. This decline is attributed to the absence of major events, including the Olympics and Presidential elections.
The first quarter of 2005 is forecast to enjoy an increase of 6.6%, year on year, in advertising expenditure, with Q2 rising to 7.1% growth. Q3 is only predicted to rise by 2.0%, with Q4 doubling in advertising expenditure to 4.7%.
Commenting on the forecasts, Steven J. Fredericks, president of TNS Media Intelligence said: “This positive growth is a strong indicator regarding the overall state of the ad industry. As the economic recovery continues, all leading categories of media will see improvement in advertising spending, with the internet, Spanish language television and Cable Network TV showing the strongest year over year gains.”
TNS Media Intelligence predicts that online advertising will lead the way in 2005, forecasting an 11.2% growth for the medium.
These estimates are in line with previous industry thoughts, with the internet expected to lead 2005 in terms of advertising, with predictions from media commentary group Jack Myers forecasting a 30% increase in global online adspend in 2005. Carat has also predicted a 38.1% growth, while Universal McCann expect an upturn of 25% (see Internet Boosts US Adspend For 2005).
The latest data from US analysts eMarketer forecasts that total media advertising expenditure for 2005 will rise to $278.5 billion, with the online segment accounting for $11.5 billion in spending, or 4.1% of the total (see Online Advertising To Fuel 2005).
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