According to Veronis Suhler Stevenson's annual predictions, recently released and summarized in Mediaweek.com by Katy Bachman, media advertising is expected to end the year up 2.9%, to $177.1 billion,
Monday. And in 2003 the company believes media advertising will post a 5.3% gain, to $186.5 billion. In total, media and communications spending is expected to recover by year's end and finish up
4.8%, to $610 billion, the report said.
James Rutherford, executive vice president and head of investment banking at Veronis Suhler, said "…we're forecasting a recovery that, while it may be
patterned on what occurred in the early '90s, probably won't be quite as vigorous -- and it will take longer to achieve."
Report highlights include:
- Broadcast TV advertising, including
network, spot, local and syndication is expected to gain 4.1%, to $42.9 billion. A smaller gain of 1.9% is forecast for 2003.
- Cable and satellite TV advertising are expected to increase by
14.7%, to $17.4 billion, with a similar gain of 15.2% expected for 2003.
- Radio will be up 3.2% this year, to $18.4 billion, and accelerate into a 5.2% gain for 2003.
- Newspaper
advertising will increase this year, up 3.2%, to $52.3 billion, followed by a 6.4% increase in 2003.
- Outdoor advertising should end the year up 2.5%, to $5.3 billion. For 2003, Veronis
forecast a similar gain of 2.2%.
- Magazine advertising is expected to be down 3% this year, to $11.5 billion. It will be 2003 before the segment posts a 3% gain, the study reports.
Find
out more here.