US Adspend Forecast To Increase 3.7% In 2007
Total US advertising spending in 2007 will grow only 3.7%, according to a new forecast from Jack Myers Media Business Report.
Broadcast network television revenues are expected to decline 3.0% in 2007, impacted by the consolidation of the WB and UPN into the new CW Network.
Online advertising investments are forecast to increase 20% in 2007, although will experience slower growth than in recent years as, says the report, marketers are uncertain how to exploit social networking sites such as MySpace.
Total online ad investments, including search, will approach $17 billion in 2007 ad revenues. Major categories, such as automotive and telecommunications project increases of less than 10%.
The report adds that the largest percentage gains for advertisers are being targeted for satellite radio (12% growth), mobile advertising (100%), videogame advertising (90%), and branded entertainment/product placement (35%).
Cinema advertising is projected to grow by 15% after two consecutive years of 20% growth and custom publishing is being targeted for 14% growth.
More than 100 advertisers and 300 media agency executives were surveyed for the Jack Myers Business Report.
| Advertising And Communications Forecast 2005 – 2007 | |||||||||
| Advertising | 2005 | 2006 | 2007 | ||||||
| % Growth | $m | % Share | % Growth | $m | % Share | % Growth | $m | % share | |
| Newspapers | 3.4% | 47,874 | 23.0% | 0.2% | 47,970 | 21.6% | -1.8% | 47,106 | 20.4% |
| Broadcast Network Television | 2.6% | 17,851 | 8.6% | 4.0% | 18,565 | 8.3% | -3.0% | 18,008 | 7.8% |
| Cable Network Television | 8.5% | 15,905 | 7.6% | 6.0% | 16,859 | 7.6% | 4.0% | 17,534 | 7.6% |
| Broadcast Syndication | 2.5% | 2,980 | 1.4% | 2.0% | 3,040 | 1.4% | 1.0% | 3,070 | 1.3% |
| Local & National Spot TV | -4.0% | 25,451 | 12.2% | 9.0% | 27,741 | 12.5% | -5.0% | 26,354 | 11.4% |
| Local/Regional Cable TV | 9.0% | 5,341 | 2.6% | 9.0% | 5,822 | 2.6% | 9.0% | 6,346 | 2.8% |
| Branded Entertainment/Product Placement | 22.7% | 4,245 | 2.0% | 28.0% | 5,433 | 2.4% | 35.0% | 7,335 | 3.2% |
| Videogame Advertising | 67.0% | 200 | 0.1% | 50.0% | 301 | 0.1% | 90.0% | 571 | 0.2% |
| Cinema Advertising | 20.0% | 526 | 0.3% | 21.0% | 636 | 0.3% | 15.0% | 731 | 0.3% |
| Terrestrial Radio | 2.6% | 20,686 | 9.9% | 2.0% | 21,099 | 9.5% | 1.5% | 21,416 | 9.3% |
| Satellite Radio | 100.0% | 45 | 0.0% | 160.0% | 117 | 0.1% | 120.0% | 257 | 0.1% |
| Consumer Magazines | 5.8% | 13,225 | 6.3% | 4.5% | 13,820 | 6.2% | 4.2% | 14,401 | 6.2% |
| Business-to-Business Magazines | 3.5% | 8,694 | 4.2% | 3.5% | 8,998 | 4.0% | 3.0% | 9,268 | 4.0% |
| Custom Publishing | 9.0% | 15,260 | 7.3% | 20.0% | 18,312 | 8.2% | 14.0% | 20,876 | 9.0% |
| Online/Internet | 30.0% | 11,050 | 5.3% | 26.0% | 13,923 | 6.3% | 20.0% | 16,708 | 7.2% |
| Out-of-Home | 4.8% | 5,935 | 2.8% | 8.2% | 6,422 | 2.9% | 7.0% | 6,872 | 3.0% |
| Mobile Advertising | 200.0% | 200 | 0.1% | 80.0% | 360 | 0.2% | 100.0% | 720 | 0.3% |
| Yellow Pages – Print | 2.7% | 12,838 | 6.2% | 1.8% | 13,069 | 5.9% | 0.5% | 13,134 | 5.7% |
| Marketing Communications | |||||||||
| Total Advertising | 5.0% | 208,305 | 30.2% | 6.8% | 222,487 | 30.7% | 3.7% | 230,706 | 30.6% |
| Direct Mail/Marketing | 6.5% | 149,100 | 21.6% | 6.6% | 158,941 | 21.9% | 6.0% | 168,477 | 22.4% |
| Trade Promotion/Slotting Allowances | 6.0% | 161,756 | 23.5% | 3.7% | 167,741 | 23.1% | 3.5% | 173,612 | 23.0% |
| Consumer Sales Promotion/Incentives | 8.0% | 127,116 | 18.4% | 4.0% | 132,201 | 18.2% | 3.5% | 136,828 | 18.2% |
| Event Marketing | 10.0% | 13,200 | 1.9% | 12.0% | 14,784 | 2.0% | 15.0% | 17,002 | 2.3% |
| Public Relations | 10.0% | 3,850 | 0.6% | 3.5% | 3,985 | 0.5% | 7.5% | 4,284 | 0.6% |
| Other | 2.0% | 25,908 | 3.8% | -5.0% | 24,613 | 3.4% | -7.5% | 22,767 | 3.0% |
| Total Advertising & Marketing | 6.1% | 689,235 | 100.0% | 5.2% | 724,750 | 100.0% | 4.0% | 753,674 | 100.0% |
| Source: Jack Myers Media Business Report | |||||||||
A recent report from Nielsen Media Research revealed that US Advertising spending for the first three quarters of 2006 rose 5.1% over the same period last year, due to ad spending increases across many major media (see US Ad Spend Rose 5.1% Year On Year).
Meanwhile, Universal McCann projected US advertising expenditure in 2006 to total $285.1 billion, a gain of 5.2% over 2005 (see Modest US Ad Growth Predicted For 2007).