The rise can be attributed to growth in cable and satellite TV, the internet and outdoor billboards.
The research also concluded that consumer spending on media products, from satellite TV to DVDs, had risen by 6.5% to $178bn (£97.5bn) in 2003.
As a result, advertising-led media such as broadcast TV, consumer magazines and newspapers shrank by 7% as US consumers spent more time on the internet, watching DVDs and playing computer games.
The problem is exacerbated by the rise of ad avoidance as consumers turn to technologies such as pop-up blockers online and personal video recorders, which allows them to skip ads.
The study suggests that advertisers need to find new ways to target consumers, such as buying sponsored links on the internet, PR, in-store promotions and direct mail as consumers find more ways to avoid advertising.
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