U.S. Ad Market Poised to Grow 6% in 2003 According to Global Insight
Press release from the issuing company
WALTHAM, MA, November 25, 2002—Global Insight, Inc., a private company that brought together DRI and WEFA, the two most respected economic and financial information companies in the world, today announced the results of a new forecast on advertising trends in the United States for 2002 through 2006.
The forecast, “Outlook for Advertising and Media,” sets out the prospects for the $228 billion U.S. advertising market, forecasting a 6% increase for 2003 in spending, a remarkable turnaround for a market that suffered a 6% fall in 2001, its worst decline in 20 years.
The study concludes that radio, cable television, and, somewhat surprisingly, the Internet will be the major beneficiaries of this increased spending for advertising. Global Insight predicts these media outlets will experience annual average increases of 10%, 7%, and 16%, respectively, between 2002 and 2006.
Newspapers, outdoor advertising venues, and broadcast television will also benefit, but at more modest rates of growth. Increased advertising spending by the entertainment, wholesale trade, and other services sectors will be the primary sources driving this growth.
“This is very good news for the advertising market in general, and a ray of light for the economy as a whole,” commented John Rose, principal and manager of the Global Insight’s media practice. “Hard-hit media companies such as AOL/Time Warner, Disney, and Viacom will feel substantial relief in 2003, as corporate profits improve and increased retail sales drive advertising spending throughout the year and on into 2006.”
Global Insight’s Media and Advertising practice conducted this study using the renowned econometric models of Global Insight’s forecasting service, customized analytical frameworks for the analysis of media industry data, and the unique expertise of its staff. Part of Global Insight’s Consulting Services group, the Media and Advertising practice works with Fortune 500 companies to forecast demand for advertising spending, assist in corporate and strategic planning, and develop custom solutions to industry-specific problems.
The executive summary of the study, “Outlook for Advertising and Media,” is available on the Global Insight Web site at http://www.globalinsight.com/AdSpend.
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