Total US advertising revenue rose by 9.6% during the first quarter of 2004, according to TNS Media Intelligence/CMR, to $31.5 billion compared to the same time period in 2003.
Almost all media showed an upturn during the first three months of this year, with some outperforming the average, including the Internet as well as syndicated, cable and network TV. National newspapers also performed strongly.
Internet advertising revenue exhibited the most robust year-on-year growth, rising by 28.1% to $1.8 billion, a strong indicator that the medium has become an established part of the US advertising media mix.
Network TV saw ad revenue rise by 11.5% to $5.6 billion, part of a strong performance by television in general. National Syndication grew by 16.7% to $947 million, while Cable TV increased $2.9 billion from $2.6 billion (+16.3%) and Spot TV grew by 8.9% to $3.9 billion.
Advertisers spent $774 million on National Newspapers over this period up by 14.6% from $6.76 million.
Steven Fredericks, president and CEO of TNS Media Intelligence/CMR said: “The economy is a bellwether for overall ad spending, and as the economy continues to grow, ad spending follows suit. The vigorous advertising growth rate for first quarter 2004 also benefited from favourable comparisons to first quarter 2003, during which concerns regarding the Iraq War dampened March spending levels.”
The general outlook for the summer months is also positive, with Merrill Lynch (see Merrill Lynch Remains Positive About Summer US Ad Market) and WPP’s Martin Sorrell (see Sorrell Heralds Global Advertising Recovery) both expecting the Olympics and the forthcoming American presidential elections to further boost US spending.
A recent report from ZenithOptimedia also suggests that the long-awaited global advertising recovery is now finally underway. The media buying agency predicts the market is set to rise by 3.2% to $244,535 million during 2004.
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