TNS Projects Slower Growth in U.S. Adspend

NEW YORK, January 9: Total U.S. advertising spending will
rise just 2.6 percent to $153.7 billion this year, according to TNS Media
Intelligence, with the biggest gains coming from the online market, syndicated
TV and Spanish-language media.

The 2.6-percent gain is the smallest since the media economy
emerged from its 2001 recession and follows estimated advertising spending
growth of 3.8 percent in 2006. Advertising expenditures are forecast to
increase by just 2.1 percent in the first half of 2007 followed by a gain of
3.2 percent in the second half. “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 80-100 basis points to growth rates,”
said Steven Fredericks, the president and CEO of TNS Media Intelligence. “More
significant, we expect share of total ad spending will continue to shift away
from the Top 100 marketers, as media fragmentation enables more brands with
smaller media budgets to participate in the market, while concurrently helping
dampen media price inflation.”

Internet advertising is expected to account for 7.2 percent
of adspend this year, versus 6.5 percent last year, with a 13.4 percent growth
rate. Syndication TV is expected to grow by 6.6 percent and will account for
2.9 percent of adspend this year. Spanish-language media, which will account
for 3.3 percent of adspend this year, is expected to increase by 5.4 percent.
Cable TV, with an 11.9 percent share, will grow by 4.7 percent. Network TV, with
a 15.2 percent share, will remain flat, with a 0.6 percent growth rate.