• by Joe Mandese  @mp_joemandese, September 11, 2007

U.S. measured media ad spending fell 0.3% to $72.59 billion during the first half of 2007, as the ad economy shrunk for the second consecutive quarter this year, according to estimates released this morning by ad tracking firm TNS Media Intelligence. The pattern is significant, said TNS MI President-CEO Steven Fredericks, because it is the first time since 2001 that spending declined for two consecutive quarters - a trend economists look at closely for signs of recession.

"While the protracted downturn in automotive spending has been a prime contributor, the overall results reflect weakness across a wide range of industries and advertisers," Fredericks stated. "Given the uncertainties about near-term economic growth and consumer spending, we expect core ad spending will continue to face challenges during the second half of the year."

Not all media are suffering as a result of the downturn. Internet display advertising maintained its growth leadership position, registering a 17.7% increase to $5.52 billion. TNS MI does not currently track online search advertising, which is believed to be fueling even greater growth in the online sector.

Consumer magazines posted a 6.9% gain to $11.50 billion in advertising. Outdoor expenditures were up 3.6% to $1.90 billion and Cable TV followed with a 2.8% increase to $8.38 billion.

Broadcast TV media continued to experience weakness in the second quarter and turned in significant half-year declines. Network TV expenditures fell 3.6% to $11.84 billion, while ad spending on Spot TV dropped 5.4% to $7.29 billion. Syndication TV was down 5.3% to $2.00 billion.

Newspaper and radio media also saw widening losses during the second quarter. For the half-year period, ad spending in Local Newspapers plunged 5.7% to $11.09 billion on a reduction of 4.7% in space sold. Marketers lowered their radio advertising budgets by 2.7%, to a total of $5.14 billion.

Advertising Spending By Media: First Half 2007 vs. First Half 2006
1st Half '07 1st Half '06 %
MEDIA (Millions) (Millions) CHANGE
TELEVISION MEDIA $31,627.7 $32,396.0 -2.4%
NETWORK TV $11,835.9 $12,277.5 -3.6%
CABLE TV $8,379.0 $8,148.7 2.8%
SPOT TV $7,287.6 $7,706.6 -5.4%
SPANISH LANGUAGE TV $2,127.5 $2,154.0 -1.2%
SYNDICATION - NATIONAL $1,997.7 $2,109.1 -5.3%
CONSUMER MAGAZINES $11,501.9 $10,756.2 6.9%
B-TO-B MAGAZINES $1,858.9 $2,003.7 -7.2%
SUNDAY MAGAZINES $860.0 $824.3 4.3%
LOCAL MAGAZINES $228.5 $238.6 -4.2%
SPANISH LANGUAGE MAGAZINES $102.4 $90.6 13.1%
NEWSPAPERS (LOCAL) $11,091.1 $11,763.7 -5.7%
NATIONAL NEWSPAPERS $1,653.5 $1,766.5 -6.4%
SPANISH LANGUAGE NEWSPAPERS $172.0 $179.9 -4.4%
INTERNET* $5,519.0 $4,690.4 17.7%
LOCAL RADIO $3,516.2 $3,570.4 -1.5%
NATIONAL SPOT RADIO $1,161.0 $1,226.0 -5.3%
NETWORK RADIO $462.6 $484.1 -4.4%
OUTDOOR $1,903.9 $1,838.4 3.6%
FSIs $934.7 $954.3 -2.1%
TOTAL $72,593.4 $72,783.0 -0.3%
Source: TNS Media Intelligence. *Excludes search.