US Adspend Forecast

30 June 2005

US advertising spend is set to grow 3.4% this year, to $145.3 billion (€120.3bn; £80.02bn), predicts TNS Media Intelligence.

The TNSMI figures also indicate that second half growth is likely to be sluggish at 2.7%, lower than H1's +4.1%. Furthermore, the full year forecast is well down on the 9.8% adspend rise seen in 2004.

TNS president and ceo Steven Fredericks says the slowdown is a "result of advertising taking a cautious approach in the face of uncertain economic indicators and wavering consumer confidence."

However, most media will see growth, with cable television and Hispanic media more robust at 11.6% and 10.5% respectively. Cable TV showed an 18.2% rise in the first quarter, taking share from broadcast rivals [WAMN: 03-Jun-05].

The internet will also see respectable advertising growth, says TNS, at 7.6%, but that is down on the double digit rise seen in 2004.

Radio and business-to-business magazines are forecast to see a marginal drop in adspend, with a more significant 6.4% fall for the spot broadcast TV.

Adds Fredericks: "Slower third-quarter growth [of 0.7%] is not surprising, as Q3 last year benefited from the Summer Olympics and a ramp up towards the presidential election."

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