VSS: B-to-B media to grow 4.9% this year
Sept. 27, 2012 -- The b-to-b media industry is expected to grow 4.9 percent this year, totaling $26.60 billion, according to the latest edition of the VSS Communications Industry Forecast (2012-2016). The report, released by global capital private investment firm Veronis Suhler Stevensen (VSS), predicts that total spending within the U.S. communications industry will increase 5.2 percent to total $1.19 trillion this year.
VSS forecasts the b-to-b media sector's compound annual growth rate (CAGR) to be 5 percent from 2011 to 2016, totaling $34.03 billion. Growth, reports VSS, is being driven by events and digital technology, specifically Web and mobile platforms. VSS expects mobile advertising and marketing to continue to grow exponentially as mobile and tablet technologies become more interactive.
"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 and president of VSS, in a statement. "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."
Digital-related expenditures reached 26.5 percent last year, and is forecast to grow to 39.3 percent by 2016.
By 2016, VSS predicts the overall communications industry will remain the fifth-largest industry among 15 economic sectors, with a 5.2 percent CAGR (2011 to 2016).
By Elizabeth A. Reid
Photo credit, with thanks: VSS Forecast