Overall ad spending in the U.S. during the first quarter rose 4.4 percent to $33.5 billion compared to the same period a year ago, TNS Media Intelligence reported today. It's also the smallest
increase since the end of 2003.
"It is clear that advertisers were fiscally more cautious in the first quarter of 2005, given mixed economic indicators and wavering consumer confidence," Steven
Fredericks, president and CEO of TNS Media Intelligence, commented in a release on the numbers. TNS found that while the auto, banking, and retail sectors logged below market average ad spending,
spending increases in the direct response and restaurants sectors offset the decreases.
TNS found that local magazines benefited the most in the first quarter with a 26.2 percent rise to $104
million; the cable TV sector had a 18.2 percent rise to $3.5 billion; Sunday magazines grew 14.5 percent to $398 million (accounting for organic growth and expansion in the TNS MI measurement base);
and consumer magazines grew 9.5 percent to $4.7 billion.
Spending on online advertising rose 8.2 percent for the year-over-year quarter to $1.9 billion. Local newspapers and network TV led all
categories of ad spending with $5.9 billion and $5.8 billion, respectively.