Commentary
Ad Spending Grows Faster Than Economy
- by Jack Loechner , Staff Writer @mp_research, September 13, 2005
According to data recently released by TNS Media Intelligence, total advertising expenditures for the first half of 2005 increased 4.5 percent, compared to the same period in 2004, to $70.5 billion.
Steven Fredericks, President and CEO of TNS Media Intelligence, said "The first half ad expenditure numbers demonstrate sustained momentum from the first quarter of the year. The advertising market continues to outperform the general economy ..."
Cable TV continued to be a strong sector, rising 15.3 percent due to higher unit rates, increases in commercial time and larger audiences. Internet display advertising advanced 9.4 percent, again outpacing the total market. Other strong categories were Outdoor, Consumer Magazines, Local Newspapers and Network TV . National media outpaced local media during the period, while spot TV expenditures fell.
Advertising Spending by Media | |||
Media | Jan-June 2005(Millions) | Jan-June 2004(Millions) | % CHANGE |
Newspapers (Local) | $12,238.30 | $12,029.00 | 1.70% |
Network Tv | $11,692.80 | $11,214.10 | 4.30% |
Consumer Magazines | $10,500.60 | $9,621.80 | 9.10% |
Cable Tv2 | $7,935.80 | $6,881.50 | 15.30% |
Spot Tv3 | $7,339.30 | $7,819.10 | -6.10% |
Internet4 | $3,961.80 | $3,621.90 | 9.40% |
Local Radio5 | $3,589.90 | $3,537.30 | 1.50% |
B-To-B Magazines | $2,523.70 | $2,461.50 | 2.50% |
Syndication - National | $1,994.60 | $1,924.90 | 3.60% |
Hispanic Media6 | $1,953.40 | $1,889.60 | 3.40% |
Outdoor | $1,693.90 | $1,550.10 | 9.30% |
National Newspapers | $1,688.80 | $1,642.10 | 2.80% |
National Spot Radio | $1,243.30 | $1,214.30 | 2.40% |
Fsi's7 | $778.70 | $744.20 | 4.60% |
Sunday Magazines | $752.80 | $698.80 | 7.70% |
Network Radio | $486.90 | $503.60 | -3.30% |
Local Magazines | $200.00 | $160.80 | 24.40% |
Total8 | $70,574.60 | $67,514.60 | 4.50% |
Source: TNS Media Intelligence | |||
All of the top 10 advertising categories, representing 50.1 percent of all advertising expenditures, exhibited growth for the period with the exception of Non-Domestic Automotive. Direct Response posted the largest increase.
Top Ten Advertising Categories | |||
Category | Jan - June 2005 (Millions) | Jan - June 2004 (Millions) | % CHANGE |
Domestic Automotive | $4,235.70 | $4,028.90 | 5.10% |
Non-Domestic Automotive | $4,212.50 | $4,238.50 | -0.60% |
Financial Services | $3,799.70 | $3,545.70 | 7.20% |
Telecommunications | $3,735.40 | $3,611.50 | 3.40% |
Misc Local Services | $3,522.60 | $3,303.20 | 6.60% |
Retail, Other | $3,437.00 | $3,437.00 | 0.00% |
Direct Response | $2,955.60 | $2,464.10 | 19.90% |
Personal Care | $2,804.10 | $2,658.70 | 5.50% |
Travel & Tourism | $2,760.60 | $2,717.50 | 1.60% |
Restaurants | $2,330.20 | $2,134.20 | 9.20% |
Source: TNS Media Intelligence | |||
Among the leading advertiser companies, General Motors surpassed Procter & Gamble to claim the top spot during the period. The Top 10 advertisers collectively increased their ad spending by 5.5 percent.
Top Ten Advertisers | |||
Company | Jan - June 2005 (Millions) | Jan - June 2004 (Millions) | % Change |
General Motors Corp | $1,514.70 | $1,263.10 | 19.90% |
Procter & Gamble Co | $1,265.30 | $1,327.20 | -4.70% |
Time Warner Inc | $958.10 | $896.50 | 6.90% |
Ford Motor Co | $812.10 | $714.00 | 13.70% |
Sbc Communications Inc | $793.60 | $856.40 | -7.30% |
Johnson & Johnson | $784.90 | $642.60 | 22.10% |
Verizon Communications Inc | $755.60 | $704.40 | 7.30% |
Daimlerchrysler Ag | $743.90 | $848.60 | -12.30% |
Altria Group Inc | $704.10 | $560.90 | 25.50% |
Walt Disney Co | $701.00 | $745.20 | -5.90% |
Total | $9,033.30 | $8,558.90 | 5.50% |
Source: TNS Media Intelligence | |||
Note: Figures do not contain National Spot Radio, Outdoor, FSI, or PSA activity.
Please go here for more information
Jack Loechner is the Editor of The Center for Media Research's daily Research Brief. You can reach him at jack@mediapost.com.