Overall advertising expenditure in the US rose by 4.4% in the first quarter of 2005 to $33.5 billion year on year, showing the smallest increase since the end of 2003, according to new figures released by TNS Media Intelligence.
Local magazines were revealed to have benefited the most during the first three months of 2005, increasing by 26.2% to $104 million, while consumer magazines grew by 9.5% to $4.7 billion, year on year.
Sunday magazines were up by 14.5% to $398 million, compared to the same period last year. The cable television sector continued the upwards trend, rising by 18.2% year on year in Q1 2005, to reach $3.5 billion.
According to TNS, local newspapers and network television led all categories of adspend during the first quarter of the year, making $5.9 billion and $5.8 billion respectively.
Online advertising expenditure was shown to be up by 8.2% year on year in the quarter, confirming predictions for a strong performance in the online sector for 2005.
Financial services company, Goldman Sachs, has predicted 2005 to be a bullish year for online advertising, forecasting the market to increase by 28% year on year, to reach $12.3 billion (see Goldman Sachs Predicts Online Adspend To Rise By 28% In 2005)
Forecasts released earlier this month by Forrester Research are more optimistic than Goldman Sachs, predicting online adspend to reach $14.7 billion this year, a 23% increase on its 2004 estimates (see US Online Ad and Marketing Spend To Reach $14.7 Billion in 2005).
Market analyst eMarketer’s predictions are closer to Goldman Sachs’, projecting online advertising to hit $12.9 billion in 2005, a 34% rise on eMarketer’s 2004 forecast (see Online Adspend To Hit $13 Billion In 2005).
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