US communications industry spending is on pace to reach $1.185 trillion this year, representing 5.6% growth following solid 4.2% year-over-year growth in 2011, forecasts Veronis Suhler Stevenson (VSS) in an April 2012 report. VSS predicts that total industry spending will reach $1.419 trillion by 2015, marking a 5.7% compound annual growth rate (CAGR). The targeted media sector is projected to grow the most rapidly this year, at 8.1%, while the traditional marketing (3.8%) and traditional consumer advertising media (2.6%) sectors are predicted to post the slowest growth rates.
Looking at 2015 forecasts by sector, VSS predicts the entertainment and leisure media sector to get the greatest amount of spending, reaching $353.9 billion that year. The education and training media and services sector will follow at $293 billion, ahead of the targeted media sector, at $278.4 billion. The business and professional information and services sector will see spending of $247.2 billion, while the traditional consumer advertising media sector will hit $160.4 billion and the traditional marketing sector will reach $86.6 billion.
Within the targeted media sector, the pure-play consumer internet and mobile services segment is expected to grow an impressive 18.1% this year as consumers and businesses expand their use of communications platforms. Branded entertainment (7.5%) and outsourced customer content (6.7%) are also predicted to outperform this year’s projected industry growth rate of 5.6%, with B2B media (5.5%) not far behind. This would be another strong showing for the B2B media segment, which finished 2011 up 7.2% to $26.5 billion, according to March results from American Business Media (ABM).
Direct marketing, by contrast, is forecast for relatively slower growth of 2.9%.
Data from the “VSS Forecast Mid-Term Update” indicates that within the traditional marketing sector, the public relations and word-of-mouth marketing segment is predicted to post rapid growth this year, at 14.6%. B2B promotions (4%) and consumer promotions (2.1%) are also forecast for growth, although at a comparatively more muted rate.
Broadcast TV (9.3%) spending is predicted to grow rapidly this year, as is out-of-home media (7.2%) spend. These will easily outpace growth rates of other traditional consumer advertising media segments, including broadcast and satellite radio (2.6%) and consumer magazine publishing (0.8%). In fact, the newspaper publishing and local consumer directories segments are both forecast to decline this year, by 3.8% and 5.6%, respectively.
The subscription TV segment is projected to by 7.7% this year, outpacing the overall entertainment and leisure media sector growth of 5.7%. The entertainment media (TV programming, home video, videogames, recorded music, box office) segment is forecast to grow 3.5%, while consumer book publishing is expected to decline by 2.2%.
Topics: Analytics & Automated, Brand Metrics, Business-to-Business, Cable, Financial Services, Magazines, Media & Entertainment, Mobile Phone, Network, Out-of-Home, Radio, Retail & E-Commerce, Technology, Television, Trade Shows & Events, Traditional, Videogames