Total U.S. advertising spending is expected to increase 1.7 percent in 2007, reaching $152.3 billion, according to the full-year forecast released by TNS Media Intelligence, MarketingCharts reports. The numbers are a downward revision from the company's January forecast of 2.6 percent growth.
The first half of 2007 is projected to advance just 1.2 percent; the second half is expected to post a gain of 2.3 percent.
"The advertising market has moved onto a slower track than we thought possible just six months ago," said Steven J. Fredericks, president and Chief Executive Officer, TNS Media Intelligence.
He added that total measured expenditures are expected to "post their smallest annual gain since the 2001 advertising recession as marketers continue to incrementally scale back their allocations to offline media in favor of less expensive digital alternatives."
Internet display advertising is projected to lead the market with 16.0 percent growth in 2007. Outdoor spending is expected to rise 4.6 percent from 2006 levels, with Consumer and Sunday Magazines right behind at 4.5 percent.
The TV market is expected to turn in mixed results: Cable Network TV is forecast to advance 5.9 percent; Network TV expenditures are expected to increase just 1.3 percent; and Spot TV spending is expected to decline 5.5 percent.
The outlook for newspaper ad spending, which accounts for over 17 percent of total ad volume, is that it will drop 2.9 percent. Small declines are also projected for Radio (-0.3 percent) and Business-to-Business Magazines (-1.5 percent).