Hammering the consumer -- it's good

The NYTimes has this story (Upbeat Forecast for Advertising). It's good news for anyone watching the economy; better news for anyone involved in the advertising business generally. Here are a few snips:

Mr. Coen [Robert J.], senior vice president and forecasting director at Universal McCann in New York, lifted his estimate for the growth of combined national and local ad spending in the United States to 7.3 percent this year compared with 2003. In December, he had forecast a gain of 6.9 percent in 2004.

That's good, and as noted below, it represents a LOT OF MONEY. For those interested in a little more detail, he continues:

He listed among the more robust potential performers the Internet, up 20 percent; cable TV, up 14 percent; and syndicated TV, up 13 percent. Magazines, sluggish for a year, trail other national consumer media with a projected gain of 5 percent, behind rivals like newspapers, up 6.5 percent, and radio, up 7 percent. . . .Among the national ad categories expected to stand out, Mr. Coen listed drugs and remedies; toiletries and cosmetics; automobiles; dot-com brands advertising off-line in media like TV and print; beverages and snacks; and liquor. He also said he expected comebacks in several categories that were "down so low" last year, among them airlines; banks; brokers and mutual funds; insurance; and resorts.

So, what does that mean in dollars and cents, you ask. Well . . .

For 2004, Mr. Coen predicts ad spending in this country will total $263.3 billion, which would surpass the earlier record for American ad spending of $247.5 billion, set in 2000. By comparison, ad spending in the United States last year totaled $245.5 billion, he said, revising downward the forecast he made in December that 2003 would end at $249.2 billion. . . . The overseas total for 2004 is $256.1 billion, compared with $244.4 billion for 2003; the figure for last year was increased from a December estimate of $221.9 billion because of exchange rates that saw many overseas currencies appreciate considerably.

Wow! Have a good 2nd half!

Posted by Grayson at June 23, 2004 07:27 AM