Skip to main content

Kagan: Ad Market on the Mend

The U.S. advertising market is on the road to recovery according to research firm SNL Kagan, led by strong expected gains in the cable television and Internet sectors.
In a new study entitled, "Advertising Forecasts: U.S. Market Trends and Data for All Major Media," Kagan predicts that after two years of declines, total advertising sales will rise 2.8% in 2010 to $210.5 billion. That growth will continue through the decade, reaching $214.3 billion in 2011 and $275.8 billion by 2019, according to SNL Kagan.
"New media, such as mobile and internet advertising, continue to boom, while old media, particularly print, is increasingly losing its relevance," said SNL Kagan Senior Analyst Derek Baine in a statement. "Dollars are shifting into new platforms and those drawing the most eyeballs, such as cable TV."
Internet advertising revenue is expected to experience the strongest growth spurt, more than doubling its total haul to $60.1 billion in 2019 from $27.8 billion in 2011, according to SNL Kagan. Cable television advertising should remain strong, growing to $30.2 billion in 2011 and $55.1 billion in 2019. The sector reported about $12 billion in ad sales in 1999, Kagan said. Other sectors that should see strong growth include mobile and broadcast television, while so-called "old media" like business publications and newspapers will continue their downward slope.
According to Kagan, revenue at daily newspapers has dropped dramatically in the past several years - from $46.3 billion in 1999 to a projected $23 billion in 2011. Those declines are expected to level off in the future, with Kagan predicting total daily newspaper revenue of $22.5 billion in 2019.