Internet and Cable TV Ad Market Growing

As we approach the last quarter of 2010, some ad sectors are doing particularly well. The latest projections from SNL Kagan point to an overall ad market of $210.5 billion for the year. This number represents a 2.8% increase over last year. The research shop is feeling bullish about next year as well with its 2011 projection coming in at $214.3 billion, a 1.8% increase.

However, the recession has made the business environment for old-​media vendors more difficult. Analysts say daily newspapers have lost nearly half of their revenue base between 1999 and 2011.

Here are SNL Kagan’s projections for 2011 by sector:

  • Direct mail $44.169 billion
  • Cable TV $30.188 billion
  • Internet $27.807 billion
  • Daily Newspapers $23.008 billion
  • Broadcast TV $18.853 billion

According to SNL Kagan Senior Analyst Derek Baine, “New media, such as mobile and internet advertising, continue to boom, while old media, particularly print, is increasingly losing its relevance. Dollars are shifting into new platforms and those drawing the most eyeballs, such as cable TV.”

This belief is apparent in the projection the firm is making, particularly for the Internet. By 2019, spending in that media format may reach $60.1 billion.

[Source: SNL Kagan Study Indicates U.S. Advertising Market on the Mend in 2010] 
Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-​owner of several small businesses in the health care services sector.