Online Ad Spending Expected to Rise

NEW YORK Internet ad spending is expected to rise more than 7 percent in 2003, according to a full-year forecast from CMR/TNS Media Intelligence.

That optimistic projection stands in sharp contrast to the significant decline the Web experienced last year. The Internet was the worst performing sector in the media business for the first three quarters of 2002, according to a November report from CMR, with online ad expenditures dropping 18 percent versus the same period a year earlier [IQ Daily Briefing, Nov. 18, 2002].

CMR, a New York-based company that tracks ad spending in major media, attributed the predicted growth to a “technologically savvy public.”

Overall ad spending is expected to increase 3.3 percent in 2003 to $117.5 billion, according to CMR. “The spending growth seen in the last half of 2002 was clear evidence of a market rebound, and we believe the current economic upturn, while not robust will continue to be reflected in the modest growth of advertising,” said Steven J. Fredericks, president and chief operating officer of CMR/TNS Media Intelligence.

Other media categories that are due to post notable gains in 2003 ad spending, per CMR, include Spanish-language television (9.2 percent) and cable TV (4.8 percent). Categories that are expected to record moderate increases include radio (3.8 percent), business-to-business magazines (3.6 percent), outdoor (3.4 percent), network TV (2.7 percent), consumer/Sunday magazines (2.7 percent), syndication (2.5 percent), national/local Newspapers (2.6 percent) and spot TV (1.9 percent).