Monday, September 25, 2006

Communications Industry Forecast

The Advertising Spending data of the 2006 Veronis Suhler Stevenson Communications Industry Forecast indicates that consumer spending on media increased 2.8 percent to $185.90 billion in 2005, the lowest growth rate for the communications sector in 30 years. Overall ad spending is expected to increase 6.4 percent to $210.9 billion in 2006.

According to Chris Russell of Veronis Suhler Stevenson:
Some of the traditional media companies are catching up by getting products and services into new media. Advertising and entertainment go into movies and music, but you don't historically link the two... New models are forming based on iTunes that don't sell advertising but could get into the commercial market.
Internet spending for keyword search or user-generated online advertising is expected to increase 25.8 percent to $13.95 billion in 2006. If traditional media-related online advertising is included, overall internet advertising will increase 26.9 percent to $22.27 billion.

There is more information in the data here
, broken down by communications industry segments (broadcast television, cable and satellite television, broadcast ans satellite radio,entertainment media, Internet and mobile services, newspaper publishing, consumer book publishing, Yellow Pages directories, consumer magazines, B2B media, educational and training media, and professional and business information services). Data for marketing services by segment (direct marketing, branded entertainment, custom publishing and out-of-home media) are also available.

For a summary, you may want to view this Advertising Age article, Media Advertising Spending Will Grow 6.4 percent, by Andrew Hampp.

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