According to TNS Media Intelligence, the US will see 4.1% growth in the first half, declining to 2.7% in the second half of the year.
Steven Fredericks, president and CEO of TNS Media Intelligence, said: "The slower third-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 fourth quarter as advertisers' confidence in the economy stabilises and consumer spending continues to expand."
Cable network television is expected to be the medium best placed to capitalise on growth, with TNS forecasting a rise of 11.6% of the year. Hispanic media also continues to be a bright spot, with estimated growth of 10.5% compared with last year.
During the past month, the US ad industry has been buzzing with reports that Procter & Gamble, the biggest advertiser in the country, is planning to cut back on traditional television advertising spend and will look at finding new forms of marketing. The TNS forecast is for an increase of 1.1% in adspend on network television.
Even internet adspend -- after two years of double-digit growth -- is feeling the pinch, with TNS forecasting a rise of 7.6% for 2005.
The media category 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.
If you have an opinion on this or any other issue raised on Brand Republic, join the debate in the .
_1.jpg)
.jpg)
