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US Advertising Spend Shows Healthy Increase
Advertising spending for the first half of 2003 rose 2.8% versus first half 2002, according to preliminary figures released last week by Nielsen Monitor-Plus, the advertising information service of Nielsen Media Research. The fastest growth was in Hispanic TV (19%), National Magazines (c.14%) and Local Newspapers (c.10%).
Advertising spending increased in three others of the 11 reported media, FSI Coupons (consumer packaged goods only) growing 7%, Spot TV by 4%, and Spot Radio 2%. In the other five reported media it declined, Network Radio by 1.4% and Syndicated TV, Network TV, National Newspaper, and Cable TV by around 4% each.
Spending rose much quicker in the second quarter than in the first - 3.6% growth versus 1.8% for Jan to March, giving the overall figure of 2.8%.
Advertiser Spending - Top 10 Advertisers, January-May 2003
| Rank | Company | 2003 ($ Mil) | 02 vs 03
% Change | | | | | | 1 | Procter & Gamble Co. | $1,068.5 | 30.6 | | 2 | General Motors Corp. | $964.0 | -7.6 | | 3 | AOL Time Warner Inc. | $648.2 | 11.3 | | 4 | Walt Disney Co. | $555.1 | 27.1 | | 5 | Johnson & Johnson | $543.3 | 18.2 | | 6 | Altria Group Inc. | $516.6 | 10.2 | | 7 | Ford Motor Co. | $492.0 | 0.2 | | 8 | DaimlerChrysler AG | $466.3 | -17.2 | | 9 | Pfizer | $440.8 | -8.1 | | 10 | Pepsico Inc. | $434.9 | 11.9 | | Total | $6,130 | 6.9 |
The above is based on spending in the following media: Network TV, Spot TV, Synd TV, Hispanic TV, Nat'l/Local Magazine, Network/Spot Radio (19 mkts.), Outdoor, FSI (CPGs only), Nat'l/Local Newspapers (display ads only), Nat'l/Local Sunday Supplements.
Advertising spend from Jan to May '03 for the top 10 parent companies was more than $6 billion, up almost 7% from last year. Seven of the top 10 advertisers experienced growth, with P&G (+30.6%), Walt Disney (+27.1%) and Johnson & Johnson (+18.2%) showing the greatest increases in advertising expenditures.
P&G significantly increased budgets for their Folgers Coffee, Iams Dog/Cat Food, Bounty Paper Towels, Crest White Strips, Pampers Easy-Ups, and Tampax brands. Disney's growth was largely due to increased spending on motion pictures, including 'Finding Nemo' ($31 million in advertising spending), 'Bringing Down the House' ($25 million), and 'Recruit' ($22 million). Johnson & Johnson's increases are due to prescription drugs such as Remicade, Concerta, and Ortho Evra, and feminine hygiene brands including O.B. and Stayfree Silhouette.
Category Spending, Top 10 Product Categories: Advertising Spending - January-May 2003
| 2003
$Mil | 02 vs 03
$ change | 02 vs 03
% change | | Automotive-Factory | 3,566.9 | -43.7 | -1.21 | | Restaurant | 1,991.5 | 47.8 | 2.5 | | Auto Dealerships-Local | 1,961.4 | 163.2 | 9.1 | | Autos-Dealer Association | 1,501.3 | 666.5 | 79.9 | | Department Stores | 1,406.8 | 120.3 | 9.4 | | Motion Pictures | 1,403.0 | 73.9 | 5.6 | | Prescription Drugs-Human | 1,356.5 | 143.3 | 11.8 | | Telephone Svcs-Wireless | 818.7 | 57.9 | 7.6 | | Direct Response Products | 713.5 | 9.3 | 1.3 | | Furniture Stores | 584.1 | 44.1 | 8.2 | | Total | 15,304.0 | 1,283.1 | 9.1 |
Based on spending in the following media: Network TV, Spot TV, Synd TV, Hispanic TV, Nat'l/Local Magazine, Network/Spot Radio (19 mkts.), Outdoor, FSI (CPGs only), Nat'l/Local Newspapers (display ads only), Nat'l/Local Sunday Supplements
Spending for the 10 largest categories topped $15 billion for the first five months of 2003, 9% greater than the same period last year. The Automotive category continues to show the most growth, as it did in the first quarter. Although Factory advertising (ie by manufacturers) declined slightly (1.2%, $43 million), this decrease was dwarfed by increases in Dealer Association and Local Dealership spending (a combined increase of $829.7 million), for a net increase of $786 million for the Automotive category.
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