TNS Predicts 5.1% Hike in 2005 Adspend

03 February 2005

Twenty-05 will see a slowdown in the growth of US advertising expenditure - especially in the second half of the year when ad-boosting special events like the summer Olympics and the presidential punchfest will make their absence felt.

TNS Media Intelligence has dusted down its crystal ball to predict overall adspend growth of 5.1% this year. The deceleration will become evident in H2 when the growth curve will fall to 3.5% compared to the unsustainable 6.9% enjoyed in 2004.

On a quarterly basis TNS sees a robust Q1 with growth at 6%; an even beefier Q2 (7.1%); Q3 will nosedive to just 2%; and the industry will breathe again as the holiday period kicks in to generate growth of 4.7% in the final quarter.

In the media sectors, internet advertising will continue its rise and rise, increasing year-on-year by 11.2%. Spanish-language TV and cable TV will be surfing its slipstream with growth rates of 9.4% and 9.3% respectively.

There is less cheer in other sectors. Network TV will achieve growth of just 2.9% and spot TV will remain flat at 0.6%, says TNS. B2B magazines will continue their scrabble out of recession with 1.5%.growth.

Data sourced from AdAge (USA); additional content by WARC staff