Barclays Adjusts Ad Spending Forecast Downward
September 8, 2011 at 4:37 AM (PT)
BARCLAYS has revised its U.S. ad spending projections downward for this year and next, with radio still rising -- but not as much as previously expected. The new estimates for radio have ad revenues up 0.6% in 2011, down from 1.5% growth. BARCLAYS adjusted its total ad spend forecast down to 1.4% from an expected 2.9% in 2011. The company now projects a 4% increase in ad dollars instead of the previously projected 5.2% in 2012.
BARCLAYS analyst ANTHONY DICLEMENTE wrote that the numbers would be lower, if it weren't for the money expected to be spent on next year's presidential and congressional campaigns.
"For online, spending will reach $29.9 billion, up 14.8% in 2011 and then gain 13.6% to end 2012 at $33.9 billion," reports PAIDCONTENT.ORG. "BARCLAYS previously anticipated a 16.5% increase for 2011 and 15.2% for 2012. Display should grow 14.9% to $13.2 billion, while search gains 14.5% to 15.9 billion in 2012. BARCLAYS search forecast has remained unchanged, as the segment is considered to be the last ad category to be affected by a slowdown in spending and is often the first to comeback when ad budgets rise."