NEW YORK McCann Erickson's Robert Coen, senior vice president and director of forecasting at the Interpublic Group agency, today projected that total 2004 U.S. ad spending will grow to nearly $265 billion, a 7.3 percent increase over last year.
Late last year, he had predicted a 2004 rise of slightly less than 7 percent.
His revised outlook shows the four major broadcast TV networks up 10 percent to $16.5 billion, spot TV up 9 percent to nearly $11 billion and cable increasing 14 percent to $16 billion.
Coen also predicted that radio will rise 7 percent to $5 billion, magazines 5 percent to $12 billion and newspapers 6.5 percent to $8 billion. The Internet will see a gain of 20 percent to $7 billion.
The networks have been able to raise prices because of this year's Olympics and local TV will fare well because of the coming political season, Coen said. "Advertisers are not turning away. The momentum is back."
For 2005, he foresees U.S. ad spending up about 6.5 percent to $280 billion and overseas spending up about 5.5 percent to $270 billion.