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Traditional Media Ad Spend Down; Cable, Digital Up

19 Jun, 2013 By: Doug McPherson

NEW YORK – A new report from Pivotal Research says ad revenues will decline in the U.S. by 0.5 percent in 2013 to $176.25 billion. Earlier, the company predicted growth this year would reach 1.2 percent.

Pivotal forecasts that revenues in the local media sector will decline 1.6 percent to $61.5 billion and that advertisers will continue to shift dollars away from local media. Newspapers will suffer another sharp decline – the report says local newspaper revenue will fall by more than $1.6 billion (9 percent) to $16.57 billion.

Local radio revenue will fall too – a 1.6-percent drop this year to $13.9 billion.

In national media, English-language broadcast network TV is a laggard this year with revenues expected to decline nearly 2 percent to $13.36 billion. However, cable will be up 5 percent to $24 billion and Spanish-language will be up more than 7 percent to $1.35 billion.

Digital revenue growth will continue to be robust this year, particularly in the national segment according to the report. National digital dollars are expected to climb nearly 15 percent to $12.9 billion. Local digital revenue will be up 7 percent to $4.8 billion.


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