A new report has offered an optimistic prognosis for the US advertising industry by claiming that 2003 will see a significant increase in spending.
The forecast,
Outlook for Advertising and Media is produced by financial information specialist
Global Insight. It claims that all media types will experience a recovery in advertising sales in the next few years with radio, cable and the internet set to experience the fastest growth between now and 2006.
After seeing revenues fall by an almost unprecedented 6% last year, the ad market will be buoyed to hear that Global Insight is predicting a 2.8% increase this year, rising to 6% in 2003.
The revival will be driven by increased spending from the entertainment, wholesale trade and services sectors with outdoor media, newspapers and broadcast TV among the sectors to benefit.
“This is very good news for the advertising market in general, and a ray of light for the economy as a whole,” said John Rose, principal and manager of Global Insight’s media practice. “Hard-hit media companies such as AOL Time Warner, Disney and Viacom will feel substantial relief in 2003, as corporate profits improve and increased retail sales drive advertising spending throughout the year and on into 2006.”
This latest report comes on the back of some encouraging figures from Nielsen which show that US adspend through the first three quarters of 2002 was up 3.8% on last year (see US Adspend Up 3.8% Through Q3, Says Nielsen).
