TNS Forecasts 4.2 Percent Increase in U.S. Adspend

NEW YORK, January 8: A new report from TNS Media
Intelligence predicts that U.S. advertising expenditure will rise 4.2 percent
this year, with the biggest gains coming from the Internet.

Advertising dollars spent on the Internet will rise 14.4
percent, while spot TV is projected to see a 9.9-percent increase. Adspend on
Spanish-language media will increase 7.8 percent, while cable network ad
revenues will experience a 5-percent increase. Network television is expected
to see a 2.7 percent increase.

“2008 is shaping up as a year of contrasts,” said Jon
Swallen, the senior VP of research of TNS Media Intelligence. “Aside from the
continued double digit growth rate of Internet display advertising, spending
gains will be driven predominately by the powerful combination of Summer
Olympics and record-setting levels of political advertising. Offsetting this, a
weakened economy will have a dampening effect on the broader, core advertising
market.”

Television’s share of the ad market will remain stable at
44.1 percent, while the Internet’s share will rise from 7.1 percent to 8
percent.

—By Mansha Daswani