TNS Forecasts 1.7% Increase In 2007 U.S. Ad Spending
June 12, 2007 at 11:29 AM (PT)
Total U.S. advertising spending is expected to increase 1.7% in 2007 to $152.3 billion, according to the full-year forecast released today by TNS MEDIA INTELLIGENCE. This is a downward revision from the company's prior forecast of 2.6% growth issued in JANUARY (NET NEWS 1/8). The first half of 2007 is projected to advance by just 1.2%, while the second half of the year is expected to post a gain of 2.3%.
Radio -- consisting of local radio, national spot radio and network radio -- is expected to decrease 0.3% for the year. The original forecast called for growth of 1.7%.
"The advertising market has moved onto a slower track than we thought possible just six months ago," said TNS President/CEO STEVEN FREDERICKS. "We expect the overall pace of activity will pick up slightly in the second half of the year. However, it still appears that total measured expenditures will post their smallest annual gain since the 2001 advertising recession as marketers continue to incrementally scale back their allocations to off-line media in favor of less expensive digital alternatives."