New VSS Forecast Sees Radio Gaining 2% In Ad Spending For 2012
September 27, 2012 at 3:52 AM (PT)
Spending within the U.S. Communications Industry will increase 5.2% in 2012 to reach $1.189 trillion as consumers and businesses increasingly embrace digital technology and return to spending levels not seen since before the recent worldwide economic downturn, according to the 2012 Forecast released today by VERONIS SUHLER STEVENSON.
The 26th edition of the VSS Communications Industry Forecast 2012-16 found that the U.S. Communications Industry spending grew 4.4% in 2011 to $1.129 trillion despite a sluggish economy in which nominal Gross Domestic Product expanded 3.9%. Spending rose at a compound annual growth rate (CAGR) of 2.7% in the 2006-2011 forecast period, surpassing GDP by a 0.3%. VSS expects the Communications Industry to grow at a 5.2% CAGR to $1.455 trillion by 2016, almost two times the growth rate during the past five years. At that pace, the Communications Industry will remain the fifth-largest industry among 15 economic sectors in 2016.
Traditional Consumer Advertising spending will post a 2.0% gain in 2012 to $146.57 billion. Even-year political and Olympics spending on Broadcast Television and accelerated growth in Broadcast and Satellite Radio and Out-of-Home Media will drive the gain. Broadcast TV, Broadcast and Satellite Radio, and Out-of-Home Media will also drive a 2.1% CAGR in the forecast period.
"Digital's influence is now a constant and significant factor in every sector, segment and sub-segment of the U.S. Communications industry," said VSS Co-Founder/Pres. JOHN SUHLER. "At the same time as digital technology and innovation continue to spur growth in the industry or propel the communications industry forward, emerging digital media and services are significantly changing consumption habits among both institutional and consumer end-users. These developments will drive digital-related expenditures to constitute nearly 40% of the overall U.S. Communications Industry spending by 2016."