Cable Spending to Jump in '07


Spending on network cable television ads is expected to nearly double the pace of overall media outlays in 2007, according to a full-year forecast from TNS Media Intelligence.

Network-cable ad spending could improve 4.7% in 2007 over 2006 levels, TNS Media estimated, a rate that would lead the medium to slightly boost its share of the overall media pie. At that level, cable would claim 11.9% of total U.S. media spending, up from 11.7% in 2006, when the total media outlays grew 3.8% to an estimated $149.8 billion.

For 2007, TNS is forecasting total ad spending of $153.7 billion across 18 categories, a 2.6% increase that would represent the smallest gain since the media economy emerged from the 2001 recession. TNS anticipates ad spending will advance 2.1% in the first half of this year, followed by 3.2% amelioration from July through December, paralleling an expected late-year economic uptick.

“Our outlook for 2007 is tempered by the absence of two biennial advertising events, the Olympics and federal elections, which tend to contribute an 80 to 100 basis points to growth rates,” said TNS Media Intelligence president and CEO Steven Fredricks in a statement. “More significant, we expect share of total ad spending will continue to shift away from the top 100 marketers, as media fragmentation enables more brands with smaller media budgets to participate in the market.”

A look at the media sectors shows that the Internet, reflecting only display advertising, will lead the way in terms of percentage gains this year. TNS forecasts 13.4% growth for that sector, ranking the syndicated TV market second at 6.6%.

Outdoor advertising follows at 5.7%, with consumer and Sunday magazines predicted to advance at a 5.5% rate. Spanish-language media is fifth at 5.4%, ahead of network cable.

Broadcast TV is projected to only generate a 0.6% increase, the New York-based company said.