| |
US Ad Spending Continues to Grow
Total US advertising expenditure for the first half of 2005 rose to $70.5 billion, a 4.5% increase from the same period last year, according to TNS Media Intelligence. Figures from Nielsen Media Research are slightly higher, showing an increase of 5.7% over the same period.
Spending by media- Cable TV continued to be a strong sector, rising 15.3% according to TNS and 13% according to Nielsen. Nielsen's figures also show that Hispanic TV ad spend grew by 15%. This follows the company's announcement that the number of 'ethnic television homes' in the US has increased significantly since last year, with Hispanic TV homes increasing by 2.9% and Asian TV homes by 3.2%.
- Internet advertising rose 9.4% according to TNS, and 13% according to Nielsen.
- TNS figures show Outdoor rose 9.3% and Consumer Magazines by 9.1%.
- By total dollar amount, TNS figures show that Local Newspapers and Network TV led all media at $12.2 billion and $11.6 billion respectively. However, network TV was among the slower growing media (5% according to Nielsen, 4.3% according to TNS).
- According to TNS, national media grew 7.4% while local media declined 0.1%.
Spending by categoryThe TNS report shows that all top ten advertising categories (representing 50.1% of all spending) grew with the exception of Non-Domestic Automotive, which fell by 0.6%. Domestic Automotive, with a 5.1% increase, remained the largest spending category, at $4.2 billion, while Direct Response showed the largest increase, up 19.9%.
| Top Ten Advertising Categories: First Half 2005 vs. First Half 2004(9) | | Jan - June 2005 Jan - June 2004 | | | | CATEGORY | (Millions) | (Millions) | % CHANGE | | DOMESTIC AUTOMOTIVE | $4,235.7 | $4,028.9 | 5.1% | | NON-DOMESTIC AUTOMOTIVE | $4,212.5 | $4,238.5 | -0.6% | | FINANCIAL SERVICES | $3,799.7 | $3,545.7 | 7.2% | | TELECOMMUNICATIONS | $3,735.4 | $3,611.5 | 3.4% | | MISC LOCAL SERVICES | $3,522.6 | $3,303.2 | 6.6% | | RETAIL, OTHER | $3,437.0 | $3,437.0 | 0.0% | | DIRECT RESPONSE | $2,955.6 | $2,464.1 | 19.9% | | PERSONAL CARE | $2,804.1 | $2,658.7 | 5.5% | | TRAVEL & TOURISM | $2,760.6 | $2,717.5 | 1.6% | | RESTAURANTS | $2,330.2 | $2,134.2 | 9.2% | | | | (9) Figures do not contain National Spot Radio, Outdoor, FSI, or PSA activity. |
Rapidly growing categories identified by Nielsen include fast-food restaurants with a 12% jump in ad spend, while wireless phone operators spent 18% more, and credit card services saw almost 25% growth. According to TNS, several categories decreased their ad spending during the period. Retail department stores registered a 3.2% decline and movie advertising fell by 6.2%. As pharma companies face increased public and governmental scrutiny, their ad spend is shaky: TNS says the spend on prescription drug ads fell by 0.4%, while Nielsen lists a rise of just 0.4%.
Spending By Company
The highest spending advertisers according to TNS are as follows:- General Motors (19.9% growth since 1st half 2004)
- Procter & Gamble (-4.7%)
- Time Warner Inc (6.9%)
- Ford Motor Co (13.7%)
- SBC Communications Inc (-7.3%)
- Johnson & Johnson (22.1%)
- Verizon Communications Inc (7.3%)
- Daimler Chrysler AG (-12.3%)
- Altria Group Inc (25.5%)
- Walt Disney Co (-5.9%)
Untitled Document | Top Ten Advertisers: First Half 2005 vs. First Half 2004 (10) | | | | | | COMPANY | Jan - June 2005 (Millions) | Jan - June 2004
(Millions) | % Change | | GENERAL MOTORS CORP | $4,235.7 | $4,028.9 | 19.9% | | PROCTER & GAMBLE CO | $4,212.5 | $4,238.5 | -4.7% | | TIME WARNER INC | $3,799.7 | $3,545.7 | 6.9% | | FORD MOTOR CO | $3,735.4 | $3,611.5 | 13.7% | | SBC COMMUNICATIONS INC | $3,522.6 | $3,303.2 | -7.3% | | JOHNSON & JOHNSON | $3,437.0 | $3,437.0 | 22.1% | | VERIZON COMMUNICATIONS INC | $2,955.6 | $2,464.1 | 7.3% | | DAIMLERCHRYSLER AG | $2,804.1 | $2,658.7 | -12.3% | | ALTRIA GROUP INC | $2,760.6 | $2,717.5 | 25.5% | | WALT DISNEY CO | $2,330.2 | $2,134.2 | -5.9% | | TOTAL | $9,033.3 | $8,558.9 | 5.5% | | | | | | | (10) Figures do not contain National Spot Radio, Outdoor, FSI, or PSA activity. |
Steven Fredericks, President and CEO of TNS Media Intelligence, says the 4.5% growth rate is slightly higher than the company's forecast of 4.1%, and that the figures 'demonstrate sustained momentum from the first quarter of the year'.
The companies' web sites are online at www.tns-global.com and www.nielsenmedia.com.
|
