Total communications spending in the US is projected to increase 5.4% to $923.91 billion in 2008, according to a new forecast from Veronis Suhler Stevenson.
VSS predicts that strong gains in the US institutional and alternative media sectors will offset the downward pressure of declining traditional advertising spending.
Broadcast TV is expected to surpass newspapers as the largest ad medium in 2008, while total internet ad spend will surpass broadcast TV in 2011.
Consumer media use declined slightly in 2007 as some platforms near saturation, while institutional media use increased due to mission-critical information demand.
Total communications spending is forecast to expand at a CAGR of 6.1% from 2007- 2012 to $1.2 trillion, fuelled by continued growth in institutional and alternative media.
Jim Rutherfurd, executive vice president and managing director at VSS, said: “The US communications industry has proven to be resilient during difficult economic periods over the last several decades because of the diverse portfolio of spending derived from the institutional, consumer, advertising and marketing sectors.
“While current economic conditions are contributing to the underperformance of traditional advertising and marketing segments, various institutional, consumer and alternative media segments are outperforming GDP due to several factors. Among them are businesses demanding dynamic workflow solutions for competitive global markets, consumers taking ‘staycations’ this summer and spending on entertainment media targeted at the youth market, and brand marketers shifting to alternative media to engage hard-to-reach demographics.”
Outsell, Inc recently published a forecast predicting that spending on total US advertising and marketing will grow 3.9% in 2008 to reach $412.4 billion, with the advertising portion reaching $249.1 billion (see US Aspend To Grow 3.9% In 2008).
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