Share Of Ad Spending By Medium
MEDIA TYPE | 2006 | advertisement advertisement 2005 |
TELEVISION | 43.7% | 43.2% |
MAGAZINES | 19.9% | 20.0% |
NEWSPAPERS | 18.7% | 19.9% |
RADIO | 7.4% | 7.6% |
INTERNET | 6.5% | 5.8% |
ALL OTHER | 3.8% | 3.5% |
Source: TNS Media Intelligence
The cutbacks were most pronounced among big automotive advertisers such as General Motors, which slashed its ad budget 23.7% to $2.295 billion in 2006, falling from No. 1 in 2005 to No. 2 in 2006 behind packaged goods giant Procter & Gamble. P&G boosted its spending 3.3% to $3.339 billion in 2006.
Another big automaker, DaimlerChrysler, declined as well, dropping 10.7%, though Ford Motor Co. actually boosted its spending 8.5%.
Healthcare and pharma marketer Johnson & Johnson (-19.8%) and entertainment/media conglomerates including Time Warner (-12.0%) and News Corp. (-2.4%) declined, and Walt Disney Co. (+0.9%) was essentially flat. The big category on the rise among the top 10 was telecommunications, with AT&T up 30.8% and Verizon climbing 10.4%. Both those companies acquired new operations during 2006, but also have been aggressive adopters of online advertising.
"The intense competition in this arena is reflected in the double-digit growth rates of ad budgets at nearly all the key companies including AT&T, Verizon, Comcast, Deutsche Telekom and Vonage," TNS said of the telecommunications category.
At +4.1%, the overall expansion of measured media spending is moderate, but is at about the level predicted by many forecasters. Not surprisingly, the growth has been driven by online, reflecting at fundamental shift taking place in the underlying media economy. While TNS' estimates do not include search, Internet display advertising registered a 17.3 percent increase to $9.76 billion as marketers continued to shift budgets towards targeted, digital media.
Spot TV, boosted by record-setting levels of political advertising, was up 10.4 percent for 2006 to $17.23 billion. In the fourth quarter, which contained the last five weeks leading up to Election Day, Spot TV expenditures jumped 20.7 percent.
Performance in the rest of the media economy was muted.
Ad Spending (In Millions) by Medium: 2006 vs. 2005
MEDIA | 2006 | 2005 | CHANGE |
TELEVISION MEDIA | $65,373.3 | $62,103.1 | +5.3% |
· NETWORK TV | $22,879.2 | $22,313.1 | +2.5% |
· SPOT TV | $17,233.7 | $15,614.8 | +10.4% |
· CABLE TV | $16,746.0 | $16,196.6 | +3.4% |
· SPANISH LANGUAGE TV | $4,279.3 | $3,756.1 | +13.9% |
· SYNDICATION - NATIONAL | $4,235.1 | $4,222.5 | +0.3% |
NEWSPAPER MEDIA | $27,972.1 | $28,645.8 | -2.4% |
· NEWSPAPERS (LOCAL) | $24,057.5 | $24,872.2 | -3.3% |
· NATIONAL NEWSPAPERS | $3,539.2 | $3,427.5 | +3.3% |
· SPANISH LANGUAGE NEWSP | $375.4 | $346.1 | +8.5% |
MAGAZINE MEDIA | $29,833.4 | $28,738.5 | +3.8% |
· CONSUMER MAGAZINES | $23,190.5 | $22,169.1 | +4.6% |
· B-TO-B MAGAZINES | $4,144.9 | $4,260.2 | -2.7% |
· SUNDAY MAGAZINES | $1,881.0 | $1,739.4 | +8.1% |
· LOCAL MAGAZINES | $461.6 | $428.2 | +7.8% |
· SPANISH LANGUAGE MAG | $155.4 | $141.7 | +9.7% |
RADIO MEDIA | $11,054.8 | $11,017.7 | +0.3% |
· LOCAL RADIO | $7,355.3 | $7,403.6 | -0.7% |
· NATIONAL SPOT RADIO | $2,695.0 | $2,604.1 | +3.5% |
· NETWORK RADIO | $1,004.5 | $1,009.9 | -0.5% |
ALL OTHER MEDIA TYPES | $15,415.7 | $13,303.4 | +15.9% |
· INTERNET | $9,756.1 | $8,318.0 | +17.3% |
· OUTDOOR | $3,831.2 | $3,528.8 | +8.6% |
· FSI's | $1,828.4 | $1,456.5 | +25.5% |
TOTAL | $149,649.3 | $143,808.4 | 4.1% |