Media spending looks set to pass the $1 trillion mark in the US in 2008, as the communications industry increases at a 6.7% annual growth rate.
According to the
Communications Industry Forecast by Veronis Suhler Stevenson, in 2009, the average consumer will spend 10 hours a day with media, particularly DVDs and the internet.
The report predicts advertising to grow at a steady 6.1% this year and 6.8% through 2009, reaching $260.9 billion, “driven primarily by the migration of advertising dollars from traditional to new media.”
New media is classified as cable and satellite television, as well satellite radio, the internet, adverts on movie screens and in video games. Overall, Veronis Suhler Stevenson forecasts this category to grow by 20.7% this year to $260.9 billion, compared with traditional media advertising which is expected to grow by 3.2%.
New media advertising is predicted to grow at an annual rate of 16.9% through 2009, while traditional media advertising will increase at just 4.3%. The combined strands are estimated to rise at an annual rate of 6.8% over the next four years.
Radio is also shown to expect a healthy gain, with the “unprecedented expansion of satellite radio accentuating the relatively tempered growth of broadcast radio advertising.”
Terrestrial radio advertising is forecast to grow at 2.7%, while satellite radio will increase by a massive 112.8%.
Overall, Veronis Suhler Stevenson claims that consumers will spend less of their media time with ad-based media like broadcast television and radio, satellite radio, newspapers and magazines, and more with consumer-supported media.
According to the report, consumer-supported media consists of cable and satellite television, film, home video, interactive TV, recorded music, video games, internet and books.
TNS Media Intelligence has predicted advertising expenditure in the US to reach $145.3 billion in 2005, up 3.4% year on year; but not quite the impressive growth of 9.8% enjoyed by the industry in 2004 (see TNS Predicts Muted Adspend Growth In 2005).
TNS’s estimates are more optimistic than those of analyst Merrill Lynch, which recently revised its forecasts for US adspend in 2005 down to 4.5% from the previously expected 4.8% (see Merrill Revises 2005 Ad Growth Forecasts Downwards).
Universal McCann’s Bob Coen estimates total US adspend for 2005 to be up 5.7% year on year, reaching $278.7 billion, down from his previous estimate of 6.4% (see McCann Revises 2005 Adspend Estimates).
Related Links
