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US advertising market to increase at a CAGR of 4.2%

Industry Sector

Business Services


7 January 2013


Matt Bodimeade

Type of News


The US advertising market has been forecast to increase at a compound annual growth rate (CAGR) of 4.2% over the period 2011-2015, to reach a market value of $207 billion.

Over the past few years, marketing arena worldwide has witnessed dramatic transformation, with the traditional formats of advertisements giving way to interactive digital based advertising.

Presently, the marketplace is gradually moving away from traditional offline based advertising and a commensurately rising interest is being witnessed in dynamic online interactive marketing strategies.

Virtually any medium can be used for advertising. Commercial advertising media can include billboards, printed flyers and rack cards, radio, cinema and television adverts, web banners, mobile telephone screens, magazines, and newspapers, to name just a few.

The recession took its toll on the US advertising industry with traditional formats of advertising bearing the brunt of the blow as a result of crumbling consumer/business confidence and frugal spending patterns and reduced advertising budgets across most industry verticals.

All major formats of advertising such as the television, radio, outdoor, magazines weakened with newspapers witnessing dramatic reduction in ad spends among the segments.US advertising

Although sensitive to economic cycles, digital medium is cushioned by its heavy ROI benefits. For instance, cost of displaying advertisements on the internet is comparatively lower when compared to cost incurred while displaying a 30 second ad on the TV.

The TV commercial is generally considered the most effective mass-market advertising format, as is reflected by the high prices TV networks charge for commercial airtime during popular TV events.

The annual Super Bowl football game in the United States is known as the most prominent advertising event on television. The average cost of a single thirty-second TV spot during this game has reached US$3.5 million (as of 2012).

The future looks promising for the US advertising industry as, along with improvements in budgetary allocations in the resurgent economy, the marketplace is expected to witness an influx of dollars in Internet and other channels such as social media and mobile marketing.

For more information on the US advertising market, see the latest research: US Advertising Market

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