By 2003, Americans will spend just under 10 hours per day consuming various forms of media, almost a half an hour more per day than in 1998, according to the 13th annual Communications Industry Forecast recently released by Veronis, Suhler & Associates.
The Internet, while accounting for just 5.4% of the total, is projected to stimulate media use and spending in a wide range of categories, from books and recorded music to television and business publishing.
Over the five-year forecast period 1998-2003, the forecast projects overall spending on media to rise at a compound annual growth rate of 7.5%. Consumer media spending will grow at the fastest clip, 8.2%, from $118.2 billion in 1998 to $174.9 billion in 2003. Advertiser spending will rise 7.6%, to $215.6 billion in 2003. Institutional spending by businesses and schools will grow 7.0% annually, to $123.4 billion, while spending on specialty media (consumer and B-to-B promotion, outdoor advertising, direct mail and sponsorships) will grow 7.2% to $149.3 billion.
Total U.S. spending on media will reach $663.3 billion by 2003, up from $461.3 billion in 1998. The 7.5% annual growth rate will make communications the second fastest-growing industry (behind telecommunications) among the U.S. top 12. By 2003, Americans will spend more on media than on food, as communications moves up one notch past food to become the sixth largest industry in the U.S.
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