Print this Article
RSSBusiness Wire
According to a new study from Kagan Research, the 2005 advertising market turned out to be a disappointment, with total ad revenue growing only 3.9% to $240 bil. ADVERTISING FORECASTS 2006 reports that the weakness was in pockets, however -- mainly traditional broadcast TV and radio -- as strong showings were made by traditional media sectors like Cable TV, Outdoor and Out-Of-Home, as well as new media.
In contrast, Kagan expects 2006 to be much more robust, fueled in part by the Olympics and elections, with growth of 6.6% to $255.7 bil. ADVERTISING FORECASTS 2006 also projects a positive outlook for advertising growth over the next 10 years.
"After speaking with top executives throughout the advertising industry, we anticipate a CAGR of 5.1% for ad revenues over the next decade, reaching $400 bil. by 2015," says Derek Baine, Sr. Vice President of Kagan Research. "Local advertising growth is expected to be less strong at 2.5% annually, reaching $120 bil. ten years out."
Other key estimates from ADVERTISING FORECASTS 2006 include:
-- The Outdoor Advertising industry has achieved phenomenal growth, rising at a compound annual growth rate of 14%/year over the last 25 years from just $260 mil. in 1970 to $6.3 bil. in 2005. This has been done in large part by finding new venues such as transit signs, benches, auditoriums, etc.
-- Satellite radio, interactive TV and the Internet posted the most robust growth rates in 2005, up 235%, 116% and 24% respectively.
-- The Internet has posted the strongest growth rate over the past decade, up an average 57% per year over the past ten years.
ADVERTISING FORECASTS 2006 charts advertising history and projected revenue growth of 15 major media sectors, including Cinema Advertising and Satellite Radio, on both a national and local basis. Drawing on exclusive, proprietary surveys of top industry executives, this exhaustive outlook features analyst commentary accounting for new sector dynamics and delivers a comprehensive economic analysis of the advertising industry. Kagan's authoritative 10-year projections are available in electronic spreadsheet formats, for convenient access to historical data, industry projections, growth models, key financial benchmarks and national vs. local comparisons.
For table of contents and more information on ADVERTISING FORECASTS 2006 go to www.kagan.com/ads2006
About Kagan Research, LLC
For over 35 years, media and communications operators, content providers and institutional investors have relied on Kagan Research for thought leadership in media business research. Kagan's consulting, publishing and data services provide exclusive benchmarking data and analysis, market advisories and long-range forecasts for TV, radio, cable, satellite, wireless, movie and sports sectors, as well as informed perspectives on emerging media, digital communications, and Internet technologies. Kagan is one of the world leaders in valuing and appraising media assets. For more information, visit www.kagan.com. Kagan Research is a division of JupiterKagan, Inc.
About JupiterKagan, Inc.
JupiterKagan, Inc. was formed in 2006 from the merger of JupiterResearch and Kagan Research, two companies providing thought leadership, research and advice in the domain of media and telecommunications, the Internet and emerging consumer technologies. The company's deliverables include continuous information services (available by subscription), research reports, data, inquiries with research analysts, appraisals, litigation support and consulting. JupiterKagan is headquartered in New York City with offices in throughout the U.S. and Europe. For more information, visit www.jupiterkagan.com.
