Online Exclusive: Advertising News

2005 AD SPENDING TO INCREASE 5% OVER LAST YEAR

TNS Forecasts Slower Growth for Less Active Year

By Published on .

NEW YORK (AdAge.com) -- Advertising spending will grow 5.1% this year to $150.5 billion, with the Internet, Spanish-language TV and cable TV showing the biggest gains, according to a forecast from TNS Media Intelligence.
Related Story:
2004 AD SPENDING TO INCREASE 9.3% OVER LAST YEAR
TNS Prediction Cites Record Political and Olympics Ad Buys

The second half of the year will show slower growth than the first half, 3.5% compared with 6.9%, unlike last year, when ad spending related to political campaigns and the Summer Olympic Games in Athens helped the second half keep pace.

TNS is forecasting spending will grow 6.6% in the first quarter and 7.1% in the second, then slow down to 2% in the third quarter and 4.7% in the fourth.

The Internet will show the fastest rate of growth among media, up 11.2%, followed by Spanish-language TV with 9.4% growth and cable TV with 9.3%. Unlike in the second-half of 2004, which saw spending from political campaigns, spot TV will be almost flat, up only 0.6%. Business-to-business magazines will recover from the depths of the recession to show 1.5% growth.

Without the help of Olympic-related ad spending and with cable increasingly siphoning off viewers, network TV will show limited growth, up only 2.9%.

In this article:
Most Popular