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International: TNS forecasts 2005 ad spending to increase 5% over last year

05-February-2005
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International: TNS forecasts 2005 ad spending to increase 5% over last year

Advertising spending will grow 5.1per cent this year to $150.5 billion, with the Internet, Spanish-language TV and cable TV showing the biggest gains, according to a forecast from TNS Media Intelligence.

The second half of the year will show slower growth than the first half, 3.5 per cent compared with 6.9 per cent. It will be unlike last year when ad spending related to political campaigns and the Summer Olympic Games in Athens helped the second half keep pace.

TNS has forecasted that spending will grow 6.6 per cent in the first quarter and 7.1 per cent in the second quarter. It will slow down to 2 per cent in the third quarter and 4.7 per cent in the fourth.

The Internet will show the fastest rate of growth among media, up 11.2 per cent, followed by Spanish-language TV with 9.4 per cent growth and cable TV with 9.3 per cent. Unlike in the second half of 2004, which saw spending from political campaigns, spot TV will be almost flat, up only 0.6 per cent. Business-to-business magazines will recover from the depths of the recession to show 1.5 per cent growth.

Without the help of Olympic-related ad spending and with cable increasingly siphoning off viewers, network TV will show limited growth, up only 2.9 per cent.

Source: AdAge.com

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