Commentary

All Advertising Except Magazines Forecasted Up

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.

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