Study predicts 2.8% U.S. ad gain this year
SNL Kagan: Internet spend will exceed cable TV by 2019NEW YORK -- The U.S. advertising market will grow 2.8% this year to $210.5 billion following two years of decline, according to a new study from SNL Kagan.
The research firm also predicts a 1.8% gain to $214.3 billion in 2011 and a jump to $275.8 billion by 2019, with online ad spending set to exceed cable TV spending by then.
SNL Kagan predicts that the sectors with the strongest growth this year will be mobile, broadcast TV stations and the Internet, while business publications and newspapers will record declines.
New media, such as mobile and Internet advertising, continue to boom, while old media, particularly print, is increasingly losing its relevance," said SNL Kagan analyst Derek Baine. "Dollars are shifting into new platforms and those drawing the most eyeballs, such as cable TV."
Indeed, cable TV is projected to remain strong, with SNL Kagan forecasting the sector to grow to $30.2 billion in 2011 and $55.1 billion in 2019, up from $12 billion in 1999.
But it looks like cable TV will be overtaken by Internet advertising later this decade. Web ad spending 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 to hit $60.1 billion, according to the research firm.