[opendtv] News: Small Growth For US Ad Spending in 2007
- From: Craig Birkmaier <craig@xxxxxxxxx>
- To: OpenDTV Mail List <opendtv@xxxxxxxxxxxxx>
- Date: Tue, 16 Jan 2007 08:43:45 -0500
http://kenradio.com/
Small Growth For US Ad Spending in 2007
Total U.S. advertising spending is expected to increase 2.6% in 2007
to $153.7 billion, according to TNS Media Intelligence. This
anticipated tepid gain is the smallest since the media economy
emerged from its 2001 recession and follows estimated advertising
spending growth of 3.8 percent in 2006. 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, paralleling an expected late
year uptick in overall economic activity. The outlook for 2007 is
tempered by the absence of two biennial advertising events, the
Olympics and federal elections, which tend to contribute an
incremental 80-100 basis points to growth rates. The expect share of
total ad spending will continue to shift away from the Top 100
marketers, as media fragmentation enables more brands with smaller
media budgets to participate in the market, while concurrently
helping dampen media price inflation.
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 versus 2006, while newspapers and Spot TV are expected
to experience outright declines in ad revenue.
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