TNS Show US Adspend Up 4.5% In First Half Of 2005
Total US advertising expenditure in the first half of 2005 reached $70.5 billion, up by 4.5% on 2004, according to new data from TNS Media Intelligence.
Commenting on the market, Steven Fredericks, president and chief executive officer of TNS Media Intelligence said: “The first half ad expenditure numbers demonstrate momentum from the first quarter of the year.”
He continued: “The 4.5% growth rate for the period is slightly higher than our forecast of 4.1% issued earlier this year. The advertising market continues to out perform the general economy but the third quarter will be a much more difficult comparison period because of last year’s stimulus from the summer Olympics and national elections.”
Cable TV continued to be a strong sector, rising 15.3 percent to $7.9 billion, while Internet display advertising advanced by 9.4% to $3.9 billion, outpacing the total market.
Other strong categories were Outdoor, with a 9.3% increase to $1.6 billion; and Consumer Magazines, with a 9.1% increase to $10.5 billion. By total dollar amount, Local Newspapers and Network TV led all media at $12.2 billion and $11.6 billion, respectively, during the first half of 2005.
All of the top 10 advertising categories exhibited growth for the period with the exception of Non-Domestic Automotive, which posted a 0.6 percent decline, while among the leading advertiser companies, General Motors surpassed Procter & Gamble to claim the top spot during the period.
The Top 10 advertisers collectively increased their ad spending by 5.5 percent and accounted for one of every eight dollars spent in measured advertising.
Elsewhere, Aegis-owned Carat released positive forecasts for this year and next for advertising expenditure, signalling steady process in the US market (see Carat Upgrades 2005 Global Adspend Forecast To 5%).
Growth trends in the USA are in line with expectations, resulting in Carat’s 2005 forecast remaining unchanged with growth at 4.5%, while globally the media agency has slightly upgraded its 2005 global advertising expenditure forecast to 5.2%, up from the previously predicted 5%, with the increase primarily driven by growth in Asia.
Carat forecasts global growth of 5.8% in 2006, boosted by the World Cup in Germany and the Winter Olympics in Italy.
| Advertising Spend By Media: First Half 2005 vs First Half 2004 | |||
| Media | Jan-June 2005 ($ millions) | Jan-June 2004 ($ millions) | % Change |
| Newspapers (local) | 12,238.30 | 12,029.00 | 1.7 |
| Network TV | 11,692.80 | 11,214.10 | 4.3 |
| Consumer Magazines | 10,500.60 | 9,621.80 | 9.1 |
| Cable TV | 7,935.80 | 6,881.50 | 15.3 |
| Spot TV | 7,339.30 | 7,819.10 | -6.1 |
| Internet | 3,961.80 | 3,621.90 | 9.4 |
| Local Radio | 3,589.90 | 3,537.30 | 1.5 |
| B2B Magazines | 2,523.70 | 2,461.50 | 2.5 |
| Syndication – National | 1,994.60 | 1,924.90 | 3.6 |
| Hispanic Media | 1,953.40 | 1,889.60 | 3.4 |
| Outdoor | 1,693.90 | 1,550.10 | 9.3 |
| National Newspapers | 1,688.80 | 1,642.10 | 2.8 |
| National Spot Radio | 1,243.30 | 1,214.30 | 2.4 |
| FSI’s | 778.7 | 744.2 | 4.6 |
| Sunday Magazines | 752.8 | 698.8 | 7.7 |
| Network Radio | 486.9 | 503.6 | -3.3 |
| Local Magazines | 200 | 160.8 | 24.4 |
| Total | 70,574.60 | 67,514.60 | 4.5 |