Merrill Lynch Lowers Ad Outlook; Radio Took Big Hit, Online Ads to Grow 30%
Merrill Lynch has downgraded its
outlook for U.S. ad spending for 2006 and 2007, lowering its growth
estimate this year to 4.7% from 5.1% and dropping its
forecast for next year to 2.8% from 3.5%, AdWeek
reports.
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Merrill Lunch U.S. Ad Spending Growth Estimates |
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| 2006 Prior | 2006 | 2007 | 2007 Prior | |
| Broadcast TV | 5.5% | 5.5% | -1.2% | -1.2% |
| Cable TV | 6% | 6% | 6% | 7.5% |
| Magazines | 2.5% | 2.5% | 1% | 2% |
| Radio | 1.9% | 0.0% | 1% | 2.2% |
| Internet | 30% | 30% | 22% | 22% |
Merrill did not change its estimates for broadcast TV, forecasting 5.5% growth in 2006 and a drop of 1.2% in 2007. This year's
cable network growth also went unchanged, standing firm at 6%,
although Merrill downgraded its prediction for 2007 to 6% from 7.5%.
Magazines went unchanged at plus 2.5% for this year, while Merrill revised its 2007 forecast to 1% from 2%. Radio took a big hit, as Merrill downgraded this year's estimate to flat from 1.9% growth and dropped its 2007 growth projection to 1% from 2.2%.
Merrill was optimistic about Internet and projected Internet ad growth to soar nearly 30% in 2006 and another 22% next year. Merrill also noted that advertisers are putting some money towards new digital initiatives like mobile advertising, games, and video-on-demand rather than just online.
Magazines went unchanged at plus 2.5% for this year, while Merrill revised its 2007 forecast to 1% from 2%. Radio took a big hit, as Merrill downgraded this year's estimate to flat from 1.9% growth and dropped its 2007 growth projection to 1% from 2.2%.
Merrill was optimistic about Internet and projected Internet ad growth to soar nearly 30% in 2006 and another 22% next year. Merrill also noted that advertisers are putting some money towards new digital initiatives like mobile advertising, games, and video-on-demand rather than just online.
