VSS Predicts Total Communication Industry Spending to Grow 4.1 Percent in 2011
Targeted media reps biggest increase, expected to rise 7.6 % to $28.04 billion.
The Veronis Suhler Stevenson (VSS) firm releases its 25th edition of its Communications Industry Forecast for 2011-2015. According to the VSS report, the total communications industry will grow 4.1 percent during this period to $1.120 trillion.
The compound annual growth rate (CAGR) is expected to increase 5.5 percent from 2010 to 2015.
Of the four main sectors within the report (Advertising, Institutional End-User, Consumer End-User and Marketing Services), Institutional End-User spending will experience the most rapid increase in 2011; this sector is projected to grow 5.3 percent to $507.33 billion this year.
However, the sector predicted to have the biggest CAGR increase during the forecast period is the Advertising Revenue Stream. Expected to grow 6 percent by 2015, this Stream is marked to hit $245.29 billion. This stream is heavily influenced by pure-play mobile advertising spending, which is bolstered by mobile ad networks, â€śincreased computer tablet penetrationâ€ť and additional mobile services.
VSS defines pure-play services as â€śspending generated by companies that provide advertising, access, information and entertainment exclusively through an online service.â€ť
The second largest increase for 2011 is predicted to be the Consumer End-User Revenue Stream, expected to rise 3.4 percent to $194.37 billion.
B-to-b promotional spending is predicted to climb 3 percent through 2015, amounting to $23.96 billion. VSS attributes this growth to a push in promotional products.
The Digital Jump
The influence of digital media is strong in this yearâ€™s forecast, as VSS reports, â€śTime spent with the internet, including traditional media brand-related digital and pure-play platforms â€“ covering usage at home, school and work â€“ increased 6.0% in 2010 to 397 hours per personâ€¦Time spent with mobile media in 2010 soared 49.7% to 77 hours per person, thanks in large part to increased smartphone penetration.â€ť
With the influx of tablets into the mobile market (including the newly released Amazon Kindle Fire device), time spent with wireless media in 2011 is expected to spike 35.3 percent, cumulating in 104 hours spent per person