Monterey, CA (Vocus) September 7, 2010
The U.S. advertising market is on the road to recovery, according to a new study from SNL Kagan. The total market is projected to rebound 2.8% to $210.5 billion in 2010, following two consecutive years of declines. SNL Kagan forecasts the market will continue to grow, reaching $214.3 billion in 2011 and $275.8 billion by 2019.
The study, “Advertising Forecasts: U.S. Market Trends & Data for All Major Media,” provides a detailed analysis of each media sector, including historical data and projections. SNL Kagan predicts that the sectors with the strongest growth this year will be mobile, broadcast TV stations and internet, while business publications and newspapers will show the largest declines.
SNL Kagan indicates that it is unlikely old-media sectors will recover from the flight of ad dollars to new media. Daily newspapers have seen their revenues cut in half, dropping from $46.3 billion in 1999 to a forecasted $23.0 billion in 2011. Looking further ahead, losses are expected to level off, with projected revenues of $22.5 billion in 2019. Conversely, internet advertising has grown from $4.7 billion in 1999 to an estimated $27.8 billion in 2011 and is expected to more than double by 2019, reaching $60.1 billion.
On the more traditional front, cable TV is projected to remain strong. SNL Kagan forecasts the sector will grow to $30.2 billion in 2011 and $55.1 billion in 2019, up from $12.0 billion in 1999.
SNL Kagan Senior Analyst Derek Baine notes: “New media, such as mobile and internet advertising, continue to boom, while old media, particularly print, is increasingly losing its relevance. Dollars are shifting into new platforms and those drawing the most eyeballs, such as cable TV.”
This data is available exclusively as part of the SNL Kagan Unlimited Information Service. For more information, contact SNLKaganSales(at)snl(dot)com or 1.866.296.3743.
About SNL Kagan
SNL Kagan, a division of SNL Financial LC, is a comprehensive resource for financial intelligence in the media and communications sector, including the broadcasting, cable, entertainment, motion picture, telecom, wireless, satellite, publishing and new media industries. The SNL Kagan suite of products integrates breaking news, comprehensive data and expert analysis into an electronic database available online and updated around the clock. For more information, visit http://www.snlkagan.com.
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