Digital Adoption Drives Communications Industry Growth
The analysts at Veronis Suhler Stevenson (VSS) have seen the light at the end of the recession’s tunnel. This firm has its own way of measuring the U.S. Communications industry and it predicts 2012 spending on this activity will reach $1.189 trillion. The solid growth rate of 5.1% is impressive and shows that consumers and businesses are spending again. The digital portion of communications, which comprises just over 25% of the industry is on track to account for 39.3% of the total by 2016.
VSS’s most recent forecast shows expected growth in:
- Targeted Media. This sector includes branded entertainment, B2B media, and pure-play Internet as well as mobile services. In 2012, a 7.7% boost will bring sector spending to $215.81 billion.
- Traditional Marketing. In the VSS world, this group includes public relations, word-of-mouth, B2B promotions, and promotional products. By the end of 2012, businesses in this sector will have upped their spending by 4.2% to $75.91 billion. The B2B part of this group is on track to spend $26.6 billion which is a 4.9% jump over last year. Providers in the B2B space are seeing growth coming from both live and virtual events. After the slowdown from 2006-2011, businesses are again turning to Web and mobile platforms.
- Traditional Consumer Advertising. By the end of this year, spending on traditional consumer advertising in the U.S. will reach $146.57 billion, a 2.0% increase with the push coming from broadcast TV and radio as well as out-of-home media. But, as has been widely reported, traditional print and directory media will see further declines.
VSS analysts note that digital has “established itself as the driving force of growth across all of its sectors, segments and subsegments.” As consumers continue to increase their use of digital media, service and entertainment providers that go all digital will “remain relevant to their audience.”[Source: New VSS Forecast 2012-2016. Vss.com. 26 Sept. 2012. Web. 1 Oct. 2012]