TNS Media Intelligence Forecasts 1.7 Percent Increase in U.S. Advertising Spending for 2007

NEW YORK--(BUSINESS WIRE)--Total U.S. advertising spending is expected to increase 1.7 percent in 2007 to $152.3 billion, according to the full-year forecast released today by TNS Media Intelligence, the leading provider of strategic advertising and marketing information. This is a downward revision from the company’s prior forecast of 2.6 percent growth issued in January.

“The advertising market has moved onto a slower track than we thought possible just six months ago”

The first half of 2007 is projected to advance by just 1.2 percent while the second half of the year is expected to post a gain of 2.3 percent.

“The advertising market has moved onto a slower track than we thought possible just six months ago,” said Steven J. Fredericks, president and Chief Executive Officer, TNS Media Intelligence. “We expect the overall pace of activity will pick up slightly in the second half of the year. However, it still appears that total measured expenditures will post their smallest annual gain since the 2001 advertising recession as marketers continue to incrementally scale back their allocations to off-line media in favor of less expensive digital alternatives,” added Fredericks.

2007 TOTAL AD EXPENDITURES¹
GROWTH ESTIMATES

TIME PERIOD	% CHANGE vs. 2006
First Half 2007	1.2%
Second Half 2007	2.3%
FULL YEAR 2007	1.7%
Source: TNS Media Intelligence ¹ Defined as all TNS MI measured media, including: Network TV; Spot TV; Cable TV; Syndication TV; Hispanic Network TV; Consumer Magazines; Sunday Magazines; Local Magazines; Hispanic Magazines; Business-to-Business Magazines; Local Newspapers; National Newspapers; Hispanic Newspapers; Network Radio; National Spot Radio; Local Radio; Internet; Outdoor; and FSI’s.

Internet display advertising is projected to lead the market with 16.0 percent growth in 2007. Outdoor spending is expected to rise by 4.6 percent versus 2006 with Consumer and Sunday Magazines right behind at 4.5 percent.

The TV market is expected to turn in mixed results. Cable Network TV is forecasted to advance by 5.9 percent. Network TV expenditures are expected to increase by just 1.3 percent and Spot TV spending is expected to decline by 5.5 percent.

The outlook for newspaper ad spending, which accounts for over 17 percent of total ad volume, is a drop of 2.9 percent. Small declines are also projected for Radio (-0.3 percent) and Business-to-Business Magazines (-1.5 percent).

2007 ADVERTISING EXPENDITURE GROWTH ESTIMATES BY MEDIUM (Ranked By Growth Rate)
	% CHANGE vs. 2006
Internet ¹	+16.0%
Cable Network TV	+5.9%
Outdoor	+4.6%
Consumer & Sunday Magazines	+4.5%
Spanish Language Media ²	+3.7%
Network Television	+1.3%
Syndication TV	+1.2%
Radio ³	-0.3%
Business-To-Business Magazines	-1.5%
Newspapers ⁴	-2.9%
Spot TV ⁵	-5.5%
Source: TNS Media Intelligence 1. Internet display advertising only 2. Spanish Language Media consists of Hispanic Network TV; Hispanic Spot TV; Hispanic Magazines; and Hispanic Newspapers 3. Radio consists of Local Radio; National Spot Radio; and Network Radio 4. Newspapers consists of Local Newspapers and National Newspapers 5. Spot TV estimates do not include Hispanic Spot TV

About TNS Media Intelligence

Established in 23 countries with more than 16,000 customers, TNS Media Intelligence is part of the TNS Group, ranked #2 worldwide in marketing information. TNS Media Intelligence monitors 3 million brands worldwide across a multitude of media, including TV, radio, print, Internet, cinema and outdoor. The company offers a full range of insights and analyses, including the tracking of advertising expenditures and advertising creative, as well as news and social media monitoring and sports sponsorship evaluation.

In the U.S., TNS Media Intelligence is the leading provider of strategic advertising intelligence to advertising agencies, advertisers, and media properties. The company's tracking technologies collect advertising expenditure and occurrence data, as well as select creative executions, for more than 2.8 million brands across 20 media in North America. The U.S. headquarters are in New York City with sales locations in major markets throughout the United States. www.tns-mi.com

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