Moderate Rise in Ad Spending Forecast

Ad spending in the US is expected to rise 3.3 percent in 2003, up to $117.5 billion, according to the full-year forecast released this week by CMR/TNS Media Intelligence.

'For 2003, we see a continued rise in ad spending,' noted Steven J. Fredericks, president and chief executive officer, CMR/TNS Media Intelligence. 'The spending growth seen in the last half of 2002 was clear evidence of a market rebound, and we believe the current economic upturn, while not robust, will continue to be reflected in the modest growth of advertising. Spending in 2002 benefited from key drivers such as the Olympics and the recent election season. Even though 2003 will not have those market stimulants, we are expecting the year to show improved year-over-year growth.'

Looking at the quarter-by-quarter trends, spending will exhibit stronger growth through the first half of the year, due to more favourable year ago comparisons. Lower growth rates are expected as the year progresses into the 3rd and 4th quarters, reflecting comparisons to stronger year ago levels, when the market began to recover and election spending was at a high.

CMR/TNS Media Intelligence predicts spending increases in 2003 for all major media, with Spanish language television leading the way, predicted to grow 9.2 percent from its 2002 total, which closely follows demographic trends and the increasing attention advertisers are paying to the vitality of this market.

Internet and Cable TV advertising are also predicted to show significant gains reflecting a technologically savvy public and the increased viewership for cable and satellite television.

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas unless otherwise stated.

• TNS Media Intelligence/CMR
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