TNS AD SPENDING FORECAST FOR 2006: Up 5.4%

Internet, Hispanic and Cable TV Will Gain the Most

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NEW YORK (AdAge.com) -- U.S. ad spending is expected to increase by 5.4 percent this year, a significant increase over its 2005 growth rate, according to a forecast from TNS Media Intelligence.

Events like the Winter Olympics and the midterm elections are expected to boost spending on measured media, which grew by 3% in 2005, according to TNS. The 2006 projection is in line with similar forecasts, including ZenithOptimedia’s estimation of 5.1%.

Leading media
Leading the way is spending on Hispanic markets, the Internet and cable TV. Hispanic network TV spending is expected to grow by 10.4%, followed by the Internet (9.1%), cable network TV (8.4%), outdoor (7.2%) and spot TV (7%).

The laggards are likely business-to-business magazines (1%), radio (3.6%), consumer and Sunday magazines (4%) and newspapers (4.3%). Network TV is expected to grow at 4.5% and syndicated TV at 4.8%.

These expectations square with any number of indicators about the growth of the Hispanic market and the continued flight of consumers’ attention to electronic media, particularly the Internet, and away from old media like newspapers and magazines.

TV still dominates
TV spending will still dominate the market, with an expected 43.7% share. Magazines and newspapers each will comprise about 20 percent of the market, while radio will have 7.5% and Internet 6%.

Last year at this time, TNS projected overall growth of 5.1%. The research company is now estimating a 3% increase for the past year.

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