Web a Bright Spot as TNS Revises U.S. Ad Forecast Downward

  |  June 13, 2007   |  Comments

Online ad spending will lead overall ad spending with a 16 percent growth rate in 2007, according to an updated forecast.

Online ad spending will lead overall ad spending with a 16 percent growth rate in 2007, according to updated forecast figures issued by TNS Media Intelligence. TNS downgraded an earlier estimate of growth in overall U.S. ad expenditures for the year by almost a full percentage point . It now anticipates a mere 1.7 percent growth rate to $152.3 billion.

The marketing information provider estimates spending on Web display ads would grow far faster than that in any other category. The Web's closest contenders in terms of growth will be cable network TV and outdoor ads, which it anticipates will grow 5.9 percent and 4.6 percent for the year, respectively.

TNS reported earlier this month that online ad spending was up 16.7 percent over Q1 2006.

"Internet display advertising is continuing on the track that it's laid out over the last two years," said TNS SVP of Research Jon Swallen. He said online offers advantages over traditional offline media such as better targeting, lower out-of-pocket costs, and more options for small-budget advertisers.

"The continued ability to demonstrate ROI and retain accountability is attractive for advertisers, and will continue to drive budgets onto the Internet," Swallen said.

Economics, according to Swallen, is a factor in the budget cuts affecting the overall ad spend. "By and large it's a slowdown of overall economic growth, and the first quarter was certainly evidence of that," he said, though TNS stipulates the second half of the year is likely to see a return of confidence. He warns, however, that any reversal of ad budget cuts "will not make up for the lost ground we've encountered."

While the Internet spend will increase at a rate faster than all other media channels, a recent report released by JupiterResearch finds the Internet ad spend lags other media, despite increasing time spent online.

Additionally, a Q1 ad spend report released by Nielsen Monitor-Plus reported a 0.6 percent decline in U.S. ad spending across all media. Internet spending increased 31.9 percent in Q1 2007 over the first quarter last year, Nielsen Monitor-Plus found. The online category includes CPM-based image-base advertising reported by Nielsen//NetRatings.

ClickZ Live Chicago Learn Digital Marketing Insights From Leading Brands!
ClickZ Live Chicago (Nov 3-6) will deliver over 50 sessions across 10 individual tracks, including Data-Driven Marketing, Social, Mobile, Display, Search and Email. Check out the full agenda, or register and attend one of the best ClickZ events yet!

ABOUT THE AUTHOR

Enid Burns

COMMENTSCommenting policy

comments powered by Disqus

ClickZ Today is our #1 newsletter.
Get a daily dose of digital marketing.

COMMENTS

UPCOMING EVENTS

UPCOMING TRAINING

Featured White Papers

Google My Business Listings Demystified

Google My Business Listings Demystified
To help brands control how they appear online, Google has developed a new offering: Google My Business Locations. This whitepaper helps marketers understand how to use this powerful new tool.

5 Ways to Personalize Beyond the Subject Line

5 Ways to Personalize Beyond the Subject Line
82 percent of shoppers say they would buy more items from a brand if the emails they sent were more personalized. This white paper offer five tactics that will personalize your email beyond the subject line and drive real business growth.

WEBINARS

Jobs