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TNS Lowers 2007 Ad-Growth Projections

6/12/2007 8:10 AM Eastern

TNS Media Intelligence downgraded its advertising-growth projections for 2007, predicting growth in U.S. ad spending of 1.7 %, or $152.3 billion for the year.

Its previous forecast predicted a growth rate of 2.6% for this year compared with 2006, but the marketing-information firm revised its figures once it received the actual spending data for the first quarter of this year, reflecting a softer-than-expected market.

TNS CEO Steven J. Fredericks said activity should pick up slightly in the second half of the year, but it appears that total measured expenditures will post their smallest annual gain since the post-9/11 ad recession in 2001. The drop is attributed to a decrease in spending on "old" media in favor of less expensive digital initiatives.

TNS predicted that cable network advertising will grow by 5.9% over 2006 rates. Other predicted growth sectors: Internet (16%); outdoor (4.6%); consumer and Sunday magazines (4.5% each); Spanish-language media (3.7%); network television (1.3%); and syndicated TV (1.2%).

Category losers are predicted to be radio (0.3%); business-to-business magazines (1.5%); newspapers (2.9%); and spot TV (5.5%).

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