According to Kagan Research, the 2005 advertising market turned out to be a disappointment, with total ad revenue growing only 3.9% to $240 bln. Kagan expects 2006 to be much more robust, fueled in part by the Olympics and elections, with growth of 6.6% to $255.7 bln. Kagan anticipates a CAGR of 5.1% for ad revenues over the next decade, reaching $400 bln by 2015. Local advertising growth is expected to be less strong at 2.5% annually, reaching $120 bln 10 years out.
