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VSS Projects Digital-Related Expenditures to Rise 5.2% in 2012

‘Digital’s influence is now a constant and significant factor in every sector,’ says private investment firm

Spending within the U.S. communications industry will increase 5.2% in 2012 to reach $1.189 trillion as consumers and businesses increasingly embrace digital technology and return to spending levels not seen since before the recent economic downturn.

That’s according to the 2012 forecast released by private investment firm Veronis Suhler Stevenson.

VSS expects the communications industry to grow at a 5.2% compound annual growth rate to $1.455 trillion by 2016, almost two times the growth rate during the past five years. At that pace, the communications industry will remain the fifth-largest industry among 15 economic sectors in 2016, according to VSS.

Consumer and institutional end-users will maintain their strong demand for continuous and faster digital access to information through traditional and emerging channels. This will fuel the desire for the latest computer, Internet connectivity and wireless mobile technologies and devices.

“Digital’s influence is now a constant and significant factor in every sector, segment and sub-segment of the U.S. communications industry,” said VSS Co-Founder/ President John Suhler. “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.”

VSS projects traditional consumer advertising spending will post a 2% gain in 2012 to $146.57 billion. 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 and satellite radio, and out-of-home media will also drive a 2.1% CAGR in the forecast period. Newspapers, magazines and local consumer directories will “continue to struggle,” according to VSS.

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