TNS: 1.7 % increase in U.S. Advertising Spending for 2007.

Total U.S. advertising spending is expected to increase 1.7 percent in 2007 to $152.3 billion, according to the full-year forecast released today by TNS Media Intelligence. This is a downward revision from the company’s prior forecast of 2.6 percent growth issued in January.

The first half of 2007 is projected to advance by just 1.2 percent while the second half of the year is expected to post a gain of 2.3 percent.

“The advertising market has moved onto a slower track than we thought possible just six months ago,” said Steven J. Fredericks, president and Chief Executive Officer, TNS Media Intelligence. “We expect the overall pace of activity will pick up slightly in the second half of the year. However, it still appears that total measured expenditures will post their smallest annual gain since the 2001 advertising recession as marketers continue to incrementally scale back their allocations to off-line media in favor of less expensive digital alternatives,” added Fredericks.

Internet display advertising is projected to lead the market with 16.0 percent growth in 2007. Outdoor spending is expected to rise by 4.6 percent versus 2006 with Consumer and Sunday Magazines right behind at 4.5 percent.

The TV market is expected to turn in mixed results. Cable Network TV is forecasted to advance by 5.9 percent. Network TV expenditures are expected to increase by just 1.3 percent and Spot TV spending is expected to decline by 5.5 percent.

The outlook for newspaper ad spending, which accounts for over 17 percent of total ad volume, is a drop of 2.9 percent. Small declines are also projected for Radio (-0.3 percent) and Business-to-Business Magazines (-1.5 percent).

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