Commentary

Spanish TV and Internet Lead Final 2005 Ad Spending Growth Data

Spanish TV and Internet Lead Final 2005 Ad Spending Growth Data

In a final summary for ad spending in 2005, with category and advertiser analysis, Nielsen Monitor-Plus Advertising reports that spending for the full year 2005 rose 4.2% over the same period last year, due to gains across most major media, led by Internet, National Spanish-Language TV and Cable TV.

Several media however, showed little or no growth including Network TV, Local Newspapers, and Network Radio. The small increase in Spot TV in the top 100 markets can be attributed to advertising strength in the automotive, retail and insurance/real estate industries, and particularly stronger ad sales for Spanish Language stations.

US Ad Spending 2005 (% change vs. previous year)

INCREASE

% Change

Internet

23.3

Spanish language TV

16.9

Cable TV

11.0

Local magazines

10.1

Outdoor

7.3

National magazines

4.7

B2B magazines

3.5

Spot TV Top 100 DMA's

1.0

DECREASE

Coupons

0.7

Local newspapers

0.9

Network radio

1.0

Spot TV 2nd 100 DMA's

1.5

Network TV

1.5

National newspapers

4.7

 TOTAL AVERAGE

+4.2

Source: Nielsen Monitor-Plus, March 2006

Advertising for the full year 2005 for the top 10 companies was mixed but reached over $17 billion, up only 0.3% from last year. Although DaimlerChrysler cut back 4.9%, overall the automotive companies showed healthy gains, accounting for $8.2 billion in spending, an increase of 7.9%.

Top 10 US Advertisers, 2005 (Million $)

Company

Spending

%Change vs. 2004

Procter&Gamble

$3,539

-1.3%

General Motors

2,866

10.6

Time Warner Inc

1,721

8.2

DaimlerChrysler AG

1,718

-4.9

Ford Motor Co

1,599

6.5

Johnson & Johnson

1,327

0.2

Walt Disney Co

1,220

-10.5

Aitria Group Inc

1,188

12.5

Verizon Communications Inc

1,171

11.9

AT&T Inc

1,170

-27.0

Total

17,523

0.3

Source: Nielsen Monitor-Plus, March 2006

Category Spending(Spending for the 10 largest categories reached over $43 billion throughout 2005, 5.4% greater than the same period prior year. A drop in local dealership spending was more than offset by an increase in spending at the automotive factory and dealer association level. The Wireless Telephone industry was the fastest growing in terms of percent increase over prior year.

Ad Spending in Top 10 US Product Categories (Million $)

Category

Spending

% Change vs. 2004

Automotive (factory)

$13,671

6.2%

Automotive (dealers)

4,965

-2.3

Prescription drugs/pharmaceuticals

4,217

2.4

Department stores

4,087

0.7

Restaurants (fast service)

3,902

10.9

Motion pictures

3,715

5.7

Wireless phone service

3,022

16.1

Direct response

2,034

1.8

Credit card services

1,977

10.1

Furniture stores

1,5577

12.7

Source: Nielsen Monitor-Plus, March 2006

The top 10 brands in the product placement category totaled 13,447 occurrences for the full year 2005, while the top 10 programs that featured product placement for 2005 accounted for 31,673 occurrences.

And, based on a 4th quarter 2005 analysis, the average prime-time hour of television contained 15 minutes of non-program content, consisting of national & local commercials, Public Service Announcements (PSA's) and network promotional announcements. 31% of the non-program content on the Spanish Language networks was dedicated to promotional announcements while cable devoted 17% and broadcast 15% to promos.

For more information, including charts, please visit here.

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