Total US Advertising Expenditures Increased 4.1% In H1
Total US advertising expenditures in the first six months of 2006 increased 4.1% to $73 billion year on year, according to new data released by TNS Media Intelligence.
Expenditures on network TV grew 5.7% in the first half to $12.28 billion, with the medium up 1.2% for the remainder of the first half (excluding February, when the Winter Olympics were telecast.
Consumer magazines finished the first half of 2006 with a 4.4% increase in spending, to $10.9 billion, after encountering a softening demand during Q2.
Local newspapers saw total expenditures fall by 3.9% to $11.65 billion, with radio media down a combined 1.4% to an aggregate of $5.26 billion.
However, recent preliminary figures from Nielsen Monitor-Plus said that US advertising spend rose 5.1% year on year for the first half of 2006 (see US Adspend Grew 5.1% In H1 2006).
| Advertising Spending by Media: First Half 2006 vs. First Half 2005 | |||
| MEDIA | Jan-June 2006 (Millions) | Jan-June 2005 (Millions) | % CHANGE |
| NETWORK TV | $12,277.3 | $11,614.0 | 5.70% |
| NEWSPAPERS (LOCAL) | $11,645.2 | $12,120.2 | -3.90% |
| CONSUMER MAGAZINES | $10,902.5 | $10,446.8 | 4.40% |
| CABLE TV | $8,142.1 | $7,935.8 | 2.60% |
| SPOT TV | $7,691.8 | $7,339.3 | 4.80% |
| INTERNET | $4,692.0 | $3,947.3 | 18.90% |
| LOCAL RADIO | $3,554.3 | $3,607.3 | -1.50% |
| SPANISH LANGUAGE MEDIA | $2,400.8 | $1,992.1 | 20.50% |
| B-TO-B MAGAZINES | $2,181.9 | $2,207.0 | -1.10% |
| SYNDICATION – NATIONAL | $2,109.1 | $1,994.6 | 5.70% |
| OUTDOOR | $1,832.7 | $1,693.9 | 8.20% |
| NATIONAL NEWSPAPERS | $1,766.4 | $1,668.5 | 5.90% |
| NATIONAL SPOT RADIO | $1,226.0 | $1,243.3 | -1.40% |
| FSI’s | $954.3 | $788.9 | 21.00% |
| SUNDAY MAGAZINES | $891.0 | $805.4 | 10.60% |
| NETWORK RADIO | $484.1 | $486.9 | -0.60% |
| LOCAL MAGAZINES | $226.3 | $204.6 | 10.60% |
| TOTAL | $72,977.9 | $70,096.0 | 4.10% |
Source: TNS Media Intelligence
TNS also reveals that the internet accounted for 6.4% of total ad spending in the first half of the year, up from 5.6% a year ago, newspapers lost 1.3 share points over the same period, slipping to 18.6% of expenditures and falling behind magazines.
| Share of Advertising Spending by Media: First Half 2006 vs. First Half 2005 | ||
| MEDIA TYPE | Jan-June 2006 | Jan-June 2005 |
| TELEVISION | 44.30% | 43.70% |
| MAGAZINES | 19.60% | 19.60% |
| NEWSPAPERS | 18.60% | 19.90% |
| RADIO | 7.20% | 7.60% |
| INTERNET | 6.40% | 5.60% |
| ALL OTHER | 3.80% | 3.50% |
| TOTAL | 100.00% | 100.00% |
Source: TNS Media Intelligence
By category, telecommunications maintained its top position with $4.7 billion in expenditures, up 16.6%, with financial services the second largest category, growing 7.9% to $4.33 billion, which TNS says was due to “credit cards and investment brokers.”
| Top Ten Advertising Categories: First Half 2006 vs. First Half 2005 | |||
| CATEGORY | Jan-June 2006 (Millions) | Jan-June 2005 (Millions) | % Change |
| TELECOM | $4,698.7 | $4,030.0 | 16.60% |
| FINANCIAL SERVICES | $4,329.5 | $4,013.6 | 7.90% |
| LOCAL SERVICES & AMUSEMENTS | $4,259.6 | $3,811.4 | 11.80% |
| AUTO, FOREIGN | $4,170.0 | $4,336.3 | -3.80% |
| AUTO, DOMESTIC | $3,787.8 | $4,369.5 | -13.30% |
| MISC RETAIL | $3,611.7 | $3,637.4 | -0.70% |
| DIRECT RESPONSE | $3,161.6 | $2,943.1 | 7.40% |
| PERSONAL CARE PDTS | $2,921.7 | $2,833.5 | 3.10% |
| TRAVEL & TOURISM | $2,864.7 | $2,944.3 | -2.70% |
| RESTAURANTS | $2,658.7 | $2,500.6 | 6.30% |
Source: TNS Media Intelligence
Steven Fredericks, president and chief executive officer of TNS Media Intelligence, said: “Coming off a 5.3% gain in the first quarter that was aided by the Winter Olympics, the growth in total ad spending for the second quarter fell back more than expected and finished at 2.9%.
“Pro-forma monthly expenditures, excluding the stimulus of special events such as the Olympics and World Cup, have been tracking steadily within a range of a 2% to 4% increase. Third and fourth quarter political spending will be incremental to this base, helping total year performance.”
Recent research from ZenithOptimedia forecast that global ad expenditure will grow 6.1% in 2006 (see Global Ad Expenditure Predicted To Grow 6.1% in 2006).