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Indiantelevision.com's Media, Advertising, Marketing Watch US ad spend to grow 4.1% to $1.12 trillion in 2011

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MUMBAI: The US ad industry spending is on pace to grow by 4.1 per cent in 2011 to $1.120 trillion and will expand at a 5.5 per cent compound annual growth rate (CAGR) in the 2010-2015 period, according to a new forecast released by Veronis Suhler Stevenson (VSS).

By the end of 2015, the communications industry will be the eighth-fastest-growing and fourth-largest US economic component.

Ad Industry growth in the 2010-2015 period will be driven primarily by the rapid convergence of computer, Internet and wireless mobile technologies fueling the ongoing transformation of the media landscape, the report said.

Major segments that have been negatively impacted in recent years by the migration to digital platforms and economic factors are expected to stabilise during the forecast period, according to the VSS Forecast.

The traditional consumer advertising media sector, which includes the broadcast television, consumer magazine publishing, and broadcast and satellite radio segments, among others, will generate growth in the forecast period, albeit trailing GDP, as brand-related digital products and delivery methods gain a stronger foothold for most traditional media outlets.

VSS co-founder, president and general partner John Suhler said, “The sectors that held up well in the last economic downturn – targeted media, business and professional information and services, education and training media and services, and entertainment and leisure media – are all expected to record solid growth in the forecast period, thanks in large part to their migration to digital platforms and delivery methods.”

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