The only medium to show real advertising growth is the internet, with cable TV also bucking the trend, according Merril Lynch's 2006 ad expenditures forecast update two months into the year, writes MediaPost. Merrill reaffirmed its previous estimate of 4.6 percent total growth in U.S. ad expenditures from 2005 levels, a relatively conservative estimate; analyst Lauren Rich Fine wrote, however, that automotive industry advertising was an unstable factor that could undermine projections.
Internet ad spend is expected to increase an estimated 27.4 percent in 2006 compared with 2005, and spending on cable TV networks is projected to increase 7 percent.
"We expect volatility by medium by month as the domestic auto manufacturers try to reduce their overall ad expenditures," Fine wrote. "Clearly, they are moving more spending online, but at the same time they haven't abandoned traditional media - instead, they seem to be moving money around."
