US Adspend Shows 6.1% Jump In 2003
Consumer confidence, a robust economy and improving corporate performance have all helped the US advertising industry to post a 6.1% rise in expenditure during 2003, according to new figures from TNS Media Intelligence/CMR.
The internet showed the most robust growth, posting a 15.7% increase to $6.4 billion in ad spending versus 2002. This reflects a continued rise in advertisers’ confidence in the web as a mainstream medium, aided by expanding broadband penetration, more appealing ad formats and improved efficacy of online advertising, according to the report.
Steven J. Fredericks, president and chief executive officer of TNSMI/CMR, says: “While 2003 began with the ad marketplace being uncertain about the direction of the economy and the war’s impact on spending, the reality was overall advertising was not adversely affected.”
| US Advertising Spend ($m) | |||
| 2002 | 2003 | Change | |
| Local newspapers | $20,092.3 | $22,787.1 | 13.4% |
| Network TV | $20,015.7 | $20,374.5 | 1.8% |
| Consumer magazines | $17,254.1 | $18,346.8 | 6.3% |
| Spot TV | $17,165.3 | $16,244.4 | -5.4% |
| Cable TV | $10,593.3 | $12,250.9 | 15.6% |
| B2B magazines | $7,226.7 | $7,277.3 | 0.7% |
| Local radio | $6,575.3 | $6,732.3 | 2.4% |
| Internet | $5,612.9 | $6,494.7 | 15.7% |
| National syndication | $2,945.6 | $3,395.8 | 15.3% |
| National newspapers | $2,813.6 | $2,976.2 | 5.8% |
| Outdoor | $2,475.3 | $2,672.5 | 8.0% |
| National spot radio | $2,452.3 | $2,635.2 | 7.5% |
| Spanish lang. network TV | $1,946.1 | $2,195.9 | 12.8% |
| Sunday magazines | $1,264.4 | $1,330.9 | 5.3% |
| FSIs | $1,239.4 | $1,317.4 | 6.3% |
| Network radio | $965.6 | $1,000.6 | 3.6% |
| Local magazines | $311.0 | $325.4 | 4.6% |
| Total | $120,948.9 | $128,357.7 | 6.1% |
| Source: TNSMI/CMR, March 2004 | |||
The growth of 6.1% is above a consensus of forecasts compiled by MediaTelINSIGHT, which put 2003 growth at 4.1%, as shown below. (It is worth noting that some forecasters will calculate expenditure in slightly different ways to others and consequently arrive at different estimations of year on year growth.)
| LATEST US ADVERTISING GROWTH FORECASTS | |||
| ÂÂ | ÂÂ | ÂÂ | ÂÂ |
| ÂÂ | Growth (%) | ||
| 2003 | 2004 | 2005 | |
| TNSMI/CMR (01/04) | 6.7 | 7.8 | – |
| Initiative Media (02/04) | 4.3 | 4.9 | – |
| Merrill Lynch (12/03) | 2.7 | 5.8 | 5.0 |
| Universal McCann (12/03) | 5.2 | 6.9 | – |
| eMarketer (12/03) | 5.2 | 7.7 | 4.7 |
| Myers Group (12/03) | 2.8 | 5.8 | 2.1 |
| ZenithOptimedia (12/03) | 3.0 | 5.1 | 4.2 |
| Interdeco/Ad Barometer (10/03) | 2.8 | 4.1 | – |
| Average | 4.1 | 6.0 | 4.0 |
| Source: As above/compiled by MediaTelINSIGHT | |||