Internet Ad Spend Growth Second Only to Hispanic TV

Growth in Internet advertising will be exceeded only by gains in Hispanic network television in 2006, according to a forecast released today by TNS media Intelligence.

The Internet channel, excluding search, is expected to grow by 9.1 percent in 2006. Internet will account for six percent of the overall ad spend for 2006 if it grows according to the forecast. The rate of growth for the first nine months of last year reached 11.5 percent.

“This is a continuation of what we’ve seen for the past few years,” TNS Media Intelligence President and CEO Steven Fredericks told ClickZ News.

TNS does not currently include search in its forecasts, though Fredericks said the Internet channel is more significant when display and search figures are combined.

“Search is brewing at a much faster rate than display advertising,” said Fredericks. “The display piece of Internet advertising is about six percent of the total share. If you add search it will exceed 10 percent, which is a fairly major milestone.”

Total spending on advertising in the U.S. is expected to increase 5.4 percent to $152.3 billion in 2006. Slightly higher growth is forecast for the second half of the year, as compared to the first six months.

The ad segment expected to see the most growth this year is Hispanic network television. The channel is projected to see a 10.4 percent rise in 2006. “The Internet has been the leading growth media or number two. This year it’s number two but not very far off,” said Fredericks.

Spending on advertising will likely receive a lift from the winter Olympics and elections, both occurring in 2006. The Olympics should have the most impact on network television, while non-presidential elections and other political issues will likely levitate toward spot TV.

“We think that the Olympics is probably going to be worth about $450 million dollars. Most of that is going to go to network TV,” said Fredericks. “That’s why you’re seeing network TV increase at a higher rate.”