Advertising Now Smallest Piece of the Pie: VSS Communications Industry Forecast
Professional and business information could post more than $100 billion
Total communications industry spending will drop 1 percent to $882.6 billion in 2009 (the sector’s first decline since 2001), according to the newly released Veronis Suhler Stevenson Communications Industry Forecast, covering 2003-2013.
However, the report forecasts that communications spending will rebound over the next five years, growing 3.6 percent per year to more than $1 trillion, making it the third fastest growing sector of the U.S. economy for that timeframe.
The report looks at four main sectors, including Institutional End User, Advertising, Consumer End User and Marketing Services. For the first time since VSS began the communications forecast in 1986, Advertising (including magazines, newspapers, television and radio and Internet display advertising) was the smallest of the four categories at $210 billion.
Institutional End User, which includes professional and information services, business information services, education, Internet & wireless data access, cable network license fees and tradeshows, was the largest of the four sectors at $241 billion.
Marketing Services was the second largest at $216 billion and Consumer End User, which includes newspaper and magazine subscription and sales, was third at $215 billion.
Four Segments To Generate More than $100 Billion
While the VSS report says the downturn has caused several of the industry’s segments to post their weakest growth in five decades, it also cites four segments-subscription television, professional & business information services, direct marketing and entertainment media-as poised to generate more than $100 billion in spending by 2013.
But while the report predicts growth for online, event marketing, tradeshows and b-to-b e-media, it says traditional advertising-driven products–including consumer and b-to-b magazines–will continue to shrink.