Overall advertising expenditure in the US rose by 4.4% in the first quarter of 2005 to $33.5 billion year on year, showing the smallest increase since the end of 2003, according to new figures released by TNS Media Intelligence.
Sunday magazines were up by 14.5% to $398 million, compared to the same period last year. The cable television sector continued the upwards trend, rising by 18.2% year on year in Q1 2005, to reach $3.5 billion.
According to TNS, local newspapers and network television led all categories of adspend during the first quarter of the year, making $5.9 billion and $5.8 billion respectively.
Online advertising expenditure was shown to be up by 8.2% year on year in the quarter, confirming predictions for a strong performance in the online sector for 2005.
Financial services company, Goldman Sachs, has predicted 2005 to be a bullish year for online advertising, forecasting the market to increase by 28% year on year, to reach $12.3 billion (see Goldman Sachs Predicts Online Adspend To Rise By 28% In 2005)
Forecasts released earlier this month by Forrester Research are more optimistic than Goldman Sachs, predicting online adspend to reach $14.7 billion this year, a 23% increase on its 2004 estimates (see US Online Ad and Marketing Spend To Reach $14.7 Billion in 2005).
Market analyst eMarketer’s predictions are closer to Goldman Sachs’, projecting online advertising to hit $12.9 billion in 2005, a 34% rise on eMarketer’s 2004 forecast (see Online Adspend To Hit $13 Billion In 2005).