Total Ad Spending Expected to Grow, Then Slow in 2005

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By: E&P Staff

Advertising spending in the United States is estimated to grow a moderate 3.4% to $145.3 billion, according to TNS Media Intelligence. That spending is expected to slow in the second half of the year, with a 2.7% growth rate versus a 4.1% rise in the first half of 2005.

In Q3, TNS Media Intelligence forecasted 0.7% growth and in Q4 it estimates an increase of 4.5%.

This year’s forecast is weak compared to the results of 2004 — a year with a presidential election and Olympic activities. ?While the projected 3.4% gain for 2005 is behind the 9.8% increase that was seen in 2004, we are encouraged to see the advertising industry continue to show growth,? Steven Fredericks, president and CEO of TNS Media Intelligence, said in a statement.

Cable TV, Hispanic Media, the Internet, and consumer/Sunday magazines are showing gains while spot TV, business-to-business magazines, and radio are trailing.

Newspaper spending should be up 3.8%, TNS predicted.

Of all the media sectors, cable is expected to advance the most, up 11.6% for the year. Hispanic media is expected to rise 10.5% compared to 2004. Internet expenditures are anticipated to grow 7.6% — a slowdown after two years of double digit increases.

Spot TV is expected to decline the most, down 6.4%.

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