Internet display ads to soar; spot TV sales to decline, TNS Media Intelligence says

June 15, 2007

Total U.S. advertising spending is expected to increase 1.7 percent in 2007 to $152.3 billion, according to the full-year forecast released June 12 by TNS Media Intelligence.

The estimate is a downward revision from the company’s prior forecast of 2.6 percent growth issued in January. The first half of 2007 is projected to advance by 1.2 percent while the second half of the year is expected to post a gain of 2.3 percent.

Internet display advertising is projected to lead the market with 16 percent growth in 2007. Outdoor spending is expected to rise by 4.6 percent versus 2006 with consumer and Sunday magazines at 4.5 percent.

The TV market is expected to turn in mixed results. Cable network TV is forecast to advance by 5.9 percent. Network TV expenditures are expected to increase by 1.3 percent, and spot TV spending is expected to decline by 5.5 percent.

Newspaper ad spending is expected to decline 2.9 percent. Small declines are also projected for radio (-.3 percent) and business-to-business magazines (-1.5 percent).

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