US Ad Market To Experience Sound Growth In 2004
US advertising spend is expected to rise by 7.8% to $138.4 billion in 2004, with television categories driving the sector.
TNS Media Intelligence/CMR calculates that revenues were up 7.0% during the first three quarters of 2003 (see US Adspend Rises 7% In First Three Quarters) and predicts full year growth of 6.7%. Signs are that the US economic rebound will persist and political and sporting events should provide further impetus this year.
“We anticipate expenditures on the upcoming US elections and summer Olympic Games to strengthen the ad market significantly in 2004,” said Steven Fredericks, president and chief executive officer of the firm. “Additionally as he economy improves, all leading categories of media will see improvement in advertising spending, with Spanish language television, the internet, and spot TV showing the strongest year over year gains.”
TNS Media Intelligence/CMR is projecting quarter-by-quarter growth with revenues in the second half of the year boosted by election and Olympic-linked spending.
| 2004 US Adspend Growth Forecasts | |
| Period | Change vs 2003 (%) |
| Q1 | 6.5 |
| Q2 | 7.1 |
| Q3 | 8.4 |
| Q4 | 8.9 |
| Full Year | 7.8 |
| Source: TNS Media Intelligence/CMR, January 2004 | |
| 2004 US Adspend Growth Forecasts, By Medium | |
| Medium | Change vs 2003 (%) |
| Spanish Language TV | 15.7 |
| Internet | 12.1 |
| Spot TV | 10.8 |
| Network TV | 9.6 |
| Radio | 9.5 |
| Cable Network TV | 8.3 |
| Consumer/Sunday Magazines | 5.7 |
| Magazines | 5.5 |
| Syndication | 5.4 |
| Outdoor | 5.0 |
| Source: TNS Media Intelligence/CMR, January 2004 | |