The market for advertising is expected to grow in the U.S., according to the latest forecast. But MediaPost reports that growth in the television sector will be slower than in the overall market.
The overall trend will see the market “maintain its modest low single-digit percentage growth rate over the near term,” the report notes.
“Brian Wieser, senior research analyst at Pivotal Research Group, estimates the growth rate of 2.5% will continue for the U.S. advertising market — excluding Olympic and political advertising spending,” MediaPost reports. “The longer-term forecast is that the U.S. ad market will grow 3.1% on average through 2019.”
The report notes that TV spending in the first quarter was up 2% from 2014, a growth rate below the 3.5% overall average.
“Going forward, Wieser has lowered his national TV estimates, up just 1.1% from a previous 1.4% number,” the report notes. The five-year average annual growth rate is now forecast to be 2.6%, revised down from 3.1%.
In a bit of good news for traditional TV, Wieser said: “We continue to believe that commonly held views around shifting spending from traditional TV to digital media owners are generally overblown.”
The projected growth rate for digital media, however, was adjusted upward, from 10.6% annually for the five-year projection to 11.7%.