TNS: U.S. Ad Spend to Surpass $150B in 2007; Internet Ads to Grow 13.4%
Total U.S. advertising spending is expected to grow at a tepid 2.6% in
2007 to $153.7 billion, following the 3.8% growth in 2006, and the
smallest increase since 2001, according to the full-year forecast released
today by TNS Media Intelligence.
Advertising expenditures are forecast to increase by just 2.1% in the first half of 2007 followed by a gain of 3.2% in the second half, as the advertising sector more closely tracks growth in real GDP.
|
ANNUAL GROWTH RATES |
||
| YEAR | AD SPEND | REAL GDP |
| 2000 | 13.3% | 3.7% |
| 2001 | (-9.8%) | 0.8% |
| 2002 | 4.2% | 1.6% |
| 2003 | 6.1% | 2.5% |
| 2004 | 9.8% | 3.9% |
| 2005 | 3.0% | 3.2% |
| 2006 | +3.8% (e) | +3.0% (e) |
| 2007 | +2.6% (e) | +2.2% (e) |
| Sources: TNS Media Intelligence; Bureau of Economic Analysis; UBS Warburg | ||
Recently, Interpublic (IPG) predicted that ad spending will rise 4.8% this year, while Publicis (PUB) unit ZenithOptimedia forecasts 4.1% increase in U.S. ad spend.
Internet display advertising is expected to continue growing at double-digit rates in 2007 with Syndication TV, Outdoor and Magazines also exceeding the overall market average.
Network TV is projected to be almost flat, while newspapers and Spot TV are expected to experience outright declines in ad revenue.
|
2007
U.S. Ad Spend Projections by Medium |
|||
| % Change vs. 2006 | % Share of Ad Spend 2007 (forecast) | %
Share of Ad Spend 2006 (estimate) |
|
| Internet1 | 13.4% | 7.2% | 6.5% |
| Syndication TV | 6.6% | 2.9% | 2.8% |
| Outdoor | 5.7% | 2.6% | 2.5% |
| Consumer & Sunday Magazines | 5.5% | 17.9% | 17.5% |
| Spanish Language Media | 5.4% | 3.3% | 3.2% |
| Cable Network TV | 4.7% | 11.9% | 11.7% |
| Business-To-Business Magazines | 2.1% | 3.0% | 3.0% |
| Radio | 1.7% | 7.3% | 7.4% |
| Network Television | 0.6% | 15.2% | 15.0% |
| Newspapers2 | -0.9% | 17.7% | 18.4% |
| Spot TV | -2.8% | 10.9% | 11.6% |
| Source:
TNS Media Intelligence 1. Internet estimates reflect display advertising only 2. Newspaper estimates do not include web site advertising Share figures may not add to 100.0% due to rounding |
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Related discussion:
- Web Ad Spend Will Grow 13.4 Percent in '07, Says TNS - ClickZ News
- Ad
spending predicted to rise just 2.6% in 2007 -
MarketWatch - TNS:
Ads to Rise 2.6% to $153.7 Bil. in '07
-
MEDIAWEEK - Ad spending growth seen slowing sharply in 2007 - MSN Money
- Ad
spending growth seen slowing sharply in 2007
- Reuters
