Universal McCann Reduces 2005 Ad Spending Projection
December 6, 2005 at 6:05 AM (PT)
UNIVERSAL MCCANN Dir. of Forecasting BOB COEN told the UBS MEDIA WEEK CONFERENCE MONDAY (12/5) that the agency has reduced its projection for 2005 American ad spending to 4.6% ($276.01 billion) with national up 6% but local up just 2.3%. The previous projection was for 6.4% overall growth. For radio, he projected national up 1.5% (to $4.4 billion) and local up 2% (to $15.5 billion) for 2005.
COEN, citing the addition of the OLYMPICS and elections, said that 2006 spending would increase 5.8% (6.8% national, 4% local). COEN said that the 2005 reduction follows advertisers shifting dollars to Internet advertising, stock price woes at major marketing companies, and reaction to ad price increases.
COEN's numbers were followed by the UK's ZENITHOPTIMEDIA's projections of 2.9% growth for 2005, 5.1% for 2006, 4.4% in 2007, and 4.9% in 2008.
Also at the conference, CLEAR CHANNEL's RANDALL MAYS presented an overview of the company's "Less is More" efforts, repeating the company's optimism that increased ratings will result in better revenue figures despite "less than... anticipated" support from other broadcasters.