CMR Predicts ‘Modest Growth’ For Advertising Sector
US adspend will increase by more than 3% to $117.5 billion in 2003, according to a full-year forecast issued by CMR yesterday.
“For 2003, we see a continued rise in ad spending,” said Steven J. Fredericks, president and CEO of CMR/TNS Media Intelligence. “The spending growth seen in the last half of 2002 was clear evidence of a market rebound, and we believe the current economic upturn, while not robust, will continue to be reflected in the modest growth of advertising.”
CMR foresees a rise of 3.3% in total advertising expenditure with growth strongest in the first half of the year as a result of more favourable year on year comparisons. Lower growth rates are expected after June because the market picked up in the second half of 2002 and election spending peaked.
| 2003 US Adspend Growth Forecasts | |
| Period | Change vs 2002 (%) |
| Q1 | 4.2 |
| Q2 | 4.7 |
| Q3 | 2.7 |
| Q4 | 1.6 |
| Full Year | 3.3 |
| Source: CMR/TNS Media Intelligence, January 2003 | |
All major media will benefit from the overall hike in adspend with Spanish language TV to the fore with projected growth of 9.2%. Internet expenditure, which fell by almost a fifth in the first three quarters of 2002, is expected to rise by 7.4% while cable revenues are set for a 5% jump.
| 2003 US Adspend Growth Forecasts, By Medium | |
| Medium | Change vs 2002 (%) |
| Network TV | 2.7 |
| Spot TV | 1.9 |
| Cable Network TV | 4.8 |
| Spanish Language TV | 9.2 |
| Syndication | 2.5 |
| Consumer/Sunday Magazines | 2.7 |
| B2B Magazines | 3.6 |
| Newspapers | 2.6 |
| Radio | 3.8 |
| Outdoor | 3.4 |
| Internet | 7.4 |
| Source: CMR/TNS Media Intelligence, January 2003 | |