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| June 28, 2005 |
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TNS Media Intelligence Forecasts 3.4 Percent Increase in U.S. Advertising Spending for 2005
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| NEW YORK, June 28, 2005 – Advertising spending
is expected to grow a moderate 3.4 percent to $145.3 billion1, according
to TNS Media Intelligence (TNS MI), the leading provider of strategic
advertising and marketing information. The first half of 2005 is forecasted
to grow at a rate of 4.1 percent, and a 2.7 percent growth rate is
expected for the second half of the year.
“While the projected 3.4 percent gain for 2005 is behind
the 9.8 percent increase that was seen in 2004, we are encouraged
to see the advertising industry continue to show growth,”
said Steven Fredericks, President and CEO of TNS Media Intelligence.
“We are seeing strong growth in Cable TV, Hispanic Media,
the Internet and Consumer/Sunday Magazines; however segments such
as Spot TV, Business-to-Business Magazines and Radio are trailing
behind their 2004 numbers.”
Cable Network TV expenditures are expected to rise 11.6 percent
for the year, the highest increase of all media sectors. This increase
reflects an ongoing shift of TV budgets as cable networks continue
to monetize their audience ratings gains. Hispanic media is also
a bright spot on the advertising landscape, with estimated growth
of 10.5 percent, compared to 2004.
Internet expenditures are forecast to increase by 7.6 percent after
two years of double digit growth in advertising spend. Consumer/Sunday
Magazines are expected to advance by 7.5 percent.
TNS MI is forecasting a 0.7 percent increase in total ad spending
for the 3rd Quarter and 4.5 percent increase in the 4th Quarter.
“The slower 3rd Quarter growth is not surprising, as the 2004
comparison period benefited from the Summer Olympics and a ramp
up towards the Presidential election. However, we believe that the
rate of growth will improve during the 4th Quarter as advertisers’
confidence in the economy stabilizes and consumer spending continues
to expand,” noted Fredericks.
The media category which is estimated to experience the largest
decline in advertising expenditures compared to 2004 is Spot TV.
This can be attributed to factors such as competition from local
cable, and the absence of national elections.
2005 QUARTERLY GROWTH TRENDS1
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| First Half 2005 |
4.1% (e) |
| 1st Quarter 2005 |
4.4% (e) |
| 2nd Quarter 2005 |
3.7% (e) |
| Second Half 2005 |
2.7% (e) |
| 3rd Quarter 2005 |
0.7% (e) |
| 4th Quarter 2005 |
4.5% (e) |
| Full Year 2005 |
3.4% (e) |
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GROWTH ESTIMATES FOR 2005 BY INDIVIDUAL MEDIA1
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| CABLE NETWORK TV |
11.60% |
| HISPANIC2 |
10.50% |
| INTERNET |
7.60% |
| CONSUMER/SUNDAY MAGAZINES |
7.50% |
| OUTDOOR |
5.50% |
| NEWSPAPER |
3.80% |
| SYNDICATION |
3.30% |
| NETWORK TV |
1.10% |
| RADIO |
-0.10% |
| BUSINESS-TO-BUSINESS MAGAZINES |
-0.90% |
| SPOT TV |
-6.40% |
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About TNS Media Intelligence
TNS Media Intelligence in the U.S. is the leading provider of strategic
advertising and marketing information – across media, brand,
industry and market. The company’s tracking technologies collect
occurrence and expenditure data on more than 2.2 million brands
spanning 19 media. The U.S. headquarters are located in New York
City with sales locations in major markets across the country. For
further information, including this and prior press releases, please
visit http://www.tns-mi.com.
About TNS
TNS is a market information group. We are the world’s largest
custom research company and a leading provider of social and political
polling. We are also a major supplier of consumer panel, TV audience
measurement and media intelligence services.
TNS operates a global network spanning 70 countries and employs
over 13,000 people. We provide market information and measurement,
together with insights and analysis, to local and multinational
organizations.
We combine our specialist sector knowledge with expertise in the
areas of new product development, motivational research, brand and
advertising research and stakeholder management to bring our clients
up-to-the minute, internationally consistent information.
We think differently to help our clients build competitive advantage,
making TNS the sixth sense of business.
www.tns-global.com
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