In a post on MediaDailyNews, it was noted, according to industry forecaster Bob Coen, that U.S. ad spending is growing at only 3.1%, a slower pace than the U.S. economy is growing. This is a downgrade from the 4.7% predicted by Universal McCann analysts.The fastest growing segment of the media is the Web, naturally, with a 15% growth rate predicted for 2007, according to Coen. But he doesn't include online video, social networks or search in his numbers.
But here's where it gets interesting. Magna Global's Brian Wieser predicts that those emerging channels as well as mobile marketing, advanced gaming and digital out-of-home networks will grow nearly 32% in 2007. That's quite a wake up call for the traditional advertising industry. In fact, Wieser claims it's a change of the mind-set:
"...advertisers are shifting their money out of media that we define as ad-supported media into marketing."And it what seems like a real shot in the arm for the new media industry, he predicts that social media ad spending would be more than $1 billion next year, an increase of nearly 50% over 2007's numbers.
That's not to say that traditional advertising is dead. TV, newspapers, outdoor, radio, print - collectively they represent the lion's share of the ad spend. But the fact that additional channels are finally being recognized for their relevancy and permanence is encouraging.
So these are the opinions of just two analysts. What about your opinion? Do you think one is closer to the truth than the other?
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