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Universal McCann’s Coen Cuts Ad-Spending Forecast

Jun 28, 2006  •  Post A Comment

Robert Coen, senior VP and director of forecasting at media agency Universal McCann, cut his prediction for advertising growth in 2006 to 5.6 percent from 5.8 percent, with cable television taking a big hit.

Mr. Coen said he expected ad expenditures on cable-TV networks to rise 4.5 percent to $19.1 billion this year, compared with the 7.5 percent increase he forecast in December. Advertising buyers seem to be resisting higher cable ad prices and money may be shifting to Internet programs, he said.

His forecast for broadcast network TV was unchanged at $17.2 billion, up 6.5 percent. Mr. Coen increased his outlook for spot TV sales to $11 billion, a 10 percent gain, compared to his earlier forecast of 8.5 percent. Election-year advertising will probably increase as the year progresses, boosting spot spending.

Advertising on the Internet is expected to grow 25 percent to $9.7 billion in 2006, in line with Coen’s earlier forecast.

The declines can be partly attributed to reduced ad budgets in two of the biggest spending categories, automotive and pharmaceuticals, Mr. Coen said.