Ad spending will increase 7% on cable networks and 12.8% on local and regional cable next year, according to a forecast from Jack Myers Media Business Report.
Overall, Myers expects total 2006 ad spending to grow 6.1% next year, with national broadcast television (excluding Hispanic TV) the only medium anticipated to lose ad revenue. Broadcast TV could decline 2%, while national broadcast syndication may dip 1%, according to Myers.
This year, total ad revenue will increase 4.7%, Myers said.
The 2006 ad-spending projections for local and regional cable advertising are $6 billion, while this year, it will see a 9% gain to $5.34 billion, Myers said.
“The 12.8% growth projected for local and regional cable systems reflect the expansion of regional interconnects by Comcast [Corp.] and Time Warner [Cable], the increased simplicity of national cable spot buying and also the availability of new-media applications, such as target-audience segmentation, video-on-demand, DVR [digital-video-recorder] applications and interactive advertising,” the Myers forecast said.
Cable-network ad volume is expected to hit $17 billion in 2006, achieving relative parity with the broadcast networks for the first time, according to Myers.
“The surge of ad spending that cable networks had hoped would follow audiences from broadcast television does not appear to be materializing, however, as advertisers are shifting budgets into online and alternatives such as movie-screen ads,” Myers said.
This year, cable networks will see ad volume jump 8.5%, to $15.9 billion.