After an abysmal 2001, US adspend is set to creep upwards in the coming year, according to new figures from research group CMR, part of Taylor Nelson Sofres.
Spend is predicted to increase 1.5% in 2002, from $94.6 billion to $96.1bn. All major media will experience rising ad revenues, says CMR, with online advertising enjoying the fastest growth at 8.8%.
There will be less impressive rises for network television (2%), magazines (0.6%) and cable TV (1.1%), while local media and radio may benefit from elections in November.
Despite the recovery from last year, the total remains well down on the boom year of 2000, when aggregated adspend soared to $104.5bn. The slump of 2001, estimated at 9.4% by CMR, was the industry’s worst year for a decade – “One has to look back to the 1990–1991 recession to find a comparable year-over-year decline in ad spending,” commented the research firm’s president/ceo David Peeler.
Although a boost is anticipated from the Winter Olympics (to be held this quarter), first-half spend is nevertheless expected to remain down, albeit falling more slowly than in the latter half of 2001. It is the third quarter that is earmarked for an upturn, not least because it will enjoy comparison with a dismal Q3 a year earlier.
“As our nation emerges from recession,” continued Peeler, “we believe the worst is behind us and expect to see a slight industry rebound by the onset of the third quarter of 2002.”
News source: Daily Research News Online