SNL Kagan: Estimates 3% Uptick In '10 Ads, Future Brighter

SNL Kagan projects a muted 2.8% growth in the U.S. ad economy this year, though that would follow two years of declines. The market in total is projected to grow to $210.5 billion this year.

The research firm also forecasts a 29% increase in the market from next year through 2019. In 2011, spending should come in at $214.3 billion and rise to $275.8 billion as the new decade dawns.

Kagan offers an it-could-be-worse outlook for the flagging daily newspaper industry, where ad spending is forecast to come in at $23 billion in 2011 -- half of what it was in 1999. But the drain could stabilize, and spending is projected to be about the same in 2019.

Internet advertising is expected to more than double from $27.8 billion in 2011 to more than $60 billion in 2019.

Cable TV should rise 82% over the next decade, from $30.2 billion in 2011 to $55.1 billion in 2019.

Media agency Carat late last month offered a lesser forecast for the the 2010 U.S. ad economy, with growth of 1.1%, which was revised upwards after a previous estimate of .2%.

Carat also said that the newspaper business "remains challenged," TV has sturdiness and bumpy radio business has some green shoots. The agency predicted that in 2011, U.S. ad spending would grow by 1.7%.



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