TNS Forecasts 3.4% In U.S. & 10.5% In Hispanic Ad Spending For 2005.

Advertising spending is expected to grow a moderate 3.4 percent to $145.3 billion1, according to TNS Media Intelligence (TNS MI), the leading provider of strategic advertising and marketing information. The first half of 2005 is forecasted to grow at a rate of 4.1 percent, and a 2.7 percent growth rate is expected for the second half of the year.

“While the projected 3.4 percent gain for 2005 is behind the 9.8 percent increase that was seen in 2004, we are encouraged to see the advertising industry continue to show growth,” said Steven Fredericks, President and CEO of TNS Media Intelligence. “We are seeing strong growth in Cable TV, Hispanic Media, the Internet and Consumer/Sunday Magazines; however segments such as Spot TV, Business-to-Business Magazines and Radio are trailing behind their 2004 numbers.”

Cable Network TV expenditures are expected to rise 11.6 percent for the year, the highest increase of all media sectors. This increase reflects an ongoing shift of TV budgets as cable networks continue to monetize their audience ratings gains. Hispanic media is also a bright spot on the advertising landscape, with estimated growth of 10.5 percent, compared to 2004.

Internet expenditures are forecast to increase by 7.6 percent after two years of double digit growth in advertising spend. Consumer/Sunday Magazines are expected to advance by 7.5 percent.

TNS MI is forecasting a 0.7 percent increase in total ad spending for the 3rd Quarter and 4.5 percent increase in the 4th Quarter. “The slower 3rd Quarter growth is not surprising, as the 2004 comparison period benefited from the Summer Olympics and a ramp up towards the Presidential election. However, we believe that the rate of growth will improve during the 4th Quarter as advertisers’ confidence in the economy stabilizes and consumer spending continues to expand,” noted Fredericks.

The media category which is estimated to experience the largest decline in advertising expenditures compared to 2004 is Spot TV. This can be attributed to factors such as competition from local cable, and the absence of national elections.

At Advertising Age’s Ad Watch conference held on Tuesday June 28, 2005, TNS presented the 2005 forecast. To view presentation CLICK below (MS PowerPoint required)

http://www.tns-mi.com/downloads/res_adWatch2005.ppt

For more information at http://www.tns-mi.com