US adspend to cross $150bn marker with 5.1% rise

by Staff,, Brand Republic 03-Feb-05, 08:30

NEW YORK - US advertising expenditure is set to rise by 5.1% this year, crossing the $150bn (£80bn) mark for the first time, according to new research by TNS Media Intelligence.

The media analyst is predicting a rise in adspend to $150.5bn in 2005, with internet advertising and Spanish-language TV leading the way. The company is forecasting the first half of the year will be stronger, with 6.9% growth across the board, but that second-half growth will slow in the absence of major events that boosted the 2004 figure, including the Olympic Games and the US Presidential election.

Internet adspend is set for an 11.2% rise this year, ahead of Spanish-language television, on 9.4% and cable network TV on 9.3%. Lagging at the bottom of the list are spot TV, which will only see a 0.6% rise, and business-to-business magazines, set for a 1.5% rise.

Steven Fredericks, president and chief executive officer of TNS Media Intelligence, said: "We anticipate advertising expenditures will continue on a strong upward track, despite major events, such as the Olympics and the Presidential election, being absent this year. This positive growth is a strong indicator regarding the overall state of the ad industry."

The figure forecast by TNS Media Intelligence is ahead of what ZenithOptimedia is predicting. The media buying group says 2005 US adspend will rise by 4.2%, against a global increase of 6.2%.

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