US Adspend Forecast To Increase
Total US advertising spending is forecast to increase 1.7% in 2007 to $152.3 billion, according to a new full-year forecast released today by TNS Media Intelligence.
Steven J. Fredericks, president and chief executive officer, TNS Media Intelligence, said: “The advertising market has moved onto a slower track than we thought possible just six months ago. We expect the overall pace of activity will pick up slightly in the second half of the year.
“However, it still appears that total measured expenditures will post their smallest annual gain since the 2001 advertising recession as marketers continue to incrementally scale back their allocations to off-line media in favour of less expensive digital alternatives.”
| 2007 US Total Ad Expenditures (1) Growth Estimates | |
| Time Period | % Change v 2006 |
| First Half 2007 | 1.2% |
| Second Half 2007 | 2.3% |
| Full Year 2007 | 1.7% |
| Source: TNS Media Intelligence | |
| (1) Defined as all TNS MI measured media, including: Network TV; Spot TV; Cable TV; Syndication TV; Hispanic Network TV; Consumer Magazines; Sunday Magazines; Local Magazines; Hispanic Magazines; Business-to-business Magazines; Local Newspapers; National Newspapers; Hispanic Newspapers; Network Radio; National Spot Radio; Local Radio; Internet; Outdoor; and SFI’s. | |
Internet display advertising is projected to lead the market with 16% growth in 2007. Outdoor spending is expected to rise by 4.6% versus 2006 with consumer and Sunday magazines at 4.5%.
The TV market is expected to turn in mixed results. Cable network TV is forecasted to grow by 5.9%, with network TV expenditures expected to increase by just 1.3%, whilst pot TV spending is expected to decline by 5.5%.
The outlook for newspaper ad spending, which accounts for over 17% of total ad volume, is a drop of 2.9%. Small declines are also projected for radio (-0.3%) and business-to-business magazines (-1.5 percent).
| 2007 Advertising Expenditure Growth Estimates By Medium (Ranked By Growth Rate) | |
| % Change v 2006 | |
| Internet (1) | 16.0% |
| Cable Network TV | 5.9% |
| Outdoor | 4.6% |
| Consumer & Sunday Magazines | 4.5% |
| Spanish Language Media (2) | 3.7% |
| Network Television | 1.3% |
| Syndication TV | 1.2% |
| Radio (3) | -0.3% |
| Business-To-Business Magazines | -1.5% |
| Newspapers (4) | -2.9% |
| Spot TV (5) | -5.5% |
| Source: TNS Media Intelligence | |
| (1) Internet display advertising only | |
| (2) Spanish Language Media consists of Hispanic Network TV; Hispanic Spot TV; Hispanic Magazines; and Hispanic Newspapers | |
| (3) Radio consists of Local Radio; National Spot Radio; and Network Radio | |
| (4) Newspapers consists of Local Newspapers and National Newspapers | |
| (5) Spot TV estimates do not include Hispanic Spot TV | |
A recent report from TNS Media Intelligence revealed that US advertising expenditure decreased 0.3% to $34.93 billion in the first quarter of 2007 (see US Adspend Decreases In First Quarter Of 2007).
Meanwhile, a report from eMarketer said that internet ad spending per user will increase to $88.28 this year and will then inch close to the $100 per user mark in 2008 (see US Online AdSpend Per User To Increase).