Kagan Study Indicates Cable Advertising Market on the Mend

Ad forecasts are sunny for Internet and cable TV; however print and direct mail will continue to face challenges. The U.S. advertising market is on the road to recovery, according to a new study from SNL Kagan. The total market is projected to rebound 2.8 percent to $210.5 billion in 2010, following two consecutive years of declines. SNL Kagan forecasts the market will continue to grow, reaching $214.3 billion in 2011 and $275.8 billion by 2019.

The study, “Advertising Forecasts: U.S. Market Trends & Data for All Major Media,” provides a detailed analysis of each media sector, including historical data and projections. SNL Kagan predicts that the sectors with the strongest growth this year will be mobile, broadcast TV stations and Internet, while business publications and newspapers will show the largest declines.

SNL Kagan indicates that it is unlikely old-media sectors will recover from the flight of ad dollars to new media. Daily newspapers have seen their revenues cut in half, dropping from $46.3 billion in 1999 to a forecasted $23.0 billion in 2011. Looking further ahead, losses are expected to level off, with projected revenues of $22.5 billion in 2019. Conversely, internet advertising 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, reaching $60.1 billion.

On the more traditional front, cable TV is projected to remain strong. SNL Kagan forecasts the sector will grow to $30.2 billion in 2011 and $55.1 billion in 2019, up from $12.0 billion in 1999.