TNS projects 2.6% increase in total ad spending

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New York—Total U.S. ad spending is expected to reach $153.70 billion this year, up 2.6% over last year, according to a full-year forecast released Monday by TNS Media Intelligence.

The projected growth is the smallest gain since the media business emerged from the 2001 recession, TNS said, and follows a gain of 3.8% in 2006.

“Our outlook for 2007 is tempered by the absence of two biennial advertising events, the Olympics and federal elections, which tend to contribute an incremental 80 to 100 basis points to growth rates,” said Steven Fredericks, president-CEO of TNS Media Intelligence, in a statement.

He also said TNS expects a share of total ad spending to shift from the top 100 marketers to smaller brands as media fragmentation provides more advertising opportunities for companies with smaller media budgets.

TNS projects ad growth of 2.1% in the first half and 3.2% in the second half.

—Kate Maddox

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