VSS (Veronis Suhler Stevenson) has released a new forecast on spending in the U.S. Communications industry, predicting a 5.2 percent increase in spending in 2012, reaching $1.189 trillion. The 26th edition of the VSS Communications Industry Forecast 2012-16 found that U.S. Communications Industry spending grew 4.4 percent in 2011 to $1.129 trillion despite a sluggish economy.
VSS predicts that traditional consumer advertising will be up by two percent in 2012 to $146.7 billion. The report finds that even-year political and Olympics spending on broadcast television and accelerated growth in broadcast and satellite radio and out-of-home media will drive the gain. Broadcast TV, broadcast/satellite radio, and out-of-home media will also drive a 2.1 percent CAGR in the forecast period. However, newspapers, magazines and local consumer directories will continue to struggle during the forecast period.
"Digital's influence is now a constant and significant factor in every sector, segment and sub-segment of the U.S. Communications industry," said John Suhler, Co-Founder/President of VSS. "At the same time as digital technology and innovation continue to spur growth in the industry or propel the communications industry forward, emerging digital media and services are significantly changing consumption habits among both institutional and consumer end-users. These developments will drive digital-related expenditures to constitute nearly 40 percent of the overall U.S. Communications Industry spending by 2016."