First Half Ad Spending Surges, Internet Trails Hispanic, Cable TV Growth

Ad spending in the media tracked by Nielsen Monitor-Plus shot up 5.7 percent during the first half of 2005, a faster rate of growth than some forecasters had been predicting. And the fastest rising medium was not the Internet, but Spanish-language TV, followed by cable TV. While Internet ad spending turned in a healthy 12.6 percent growth over the first half of 2004, that rate is much lower than what has been tracked by trade groups like the Interactive Advertising Bureau, and a number online ad forecasters.

By comparison, ad spending on Spanish-language TV networks such as Univision and Telemundo rose 15 percent over the first half of 2004, while spending on cable networks shot up 13.1 percent, according to Monitor-Plus, which physically monitors advertising occurrences in the major media and ascribes an ad dollar value to what actually runs. The Internet ad spending data was derived from Nielsen//NetRatings' database.

As strong as the first half results are, Jeff King, managing director of Monitor-Plus, said they are continuing to strengthen. He noted that the rate of ad spending growth actually improved during the second quarter.



"In particular, spending for the top 100 spot television markets was down in the first quarter, but bounced back to a 3.1 percent gain in the second quarter," said King, in a release issues prior to a midday conference call scheduled for today.

By comparison, network TV lagged the overall growth of Nielsen measured media, rising just 4.9 percent over the first half of 2005. That comparison, however, reflects the inclusion of the Winter Olympics during the first half of 2004.

Local and national magazines (up 8.7 percent and 7.9 percent, respectively), and outdoor (+6.9 percent), paced ahead of network TV in terms of first half growth.

Business media, national and local newspapers, and radio all trailed the market.

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