US Adspend Increases In First 9 Months Of 2006
Total US advertising expenditures in the first nine months of 2006 increased 4.0 percent to $108.4 billion as compared to the same period in 2005, according to new research from TNS Media Intelligence.
The marketing information provider said that Spanish language television, leveraging the World Cup, experienced a 19.1% increase in US ad spending to $3.22 billion.
Internet display advertising posted a 17.9% gain to $7.15 billion for the nine month period. Spot TV, propelled by third quarter political advertising, advanced 6.3% to $11.95 billion.
Other TV media continued to experience soft demand during the third quarter that dampened year-to-date performance. Network TV finished the period with $16.65 billion in expenditures, up 3.8%. Cable Network ad spending of $12.14 billion was a 3.3% improvement over same period in 2005.
Local Newspapers saw expenditures for their print editions fall by 3.7% to $17.50 billion. Radio media also lagged, down a combined 1.1% to an aggregate of $8.09 billion.
The TNS research shows that the internet continues to grow its share of total advertising expenditures. For the first nine months of 2006, the Internet accounted for 6.6% of total ad spending, up from 5.8% a year ago.
Newspapers lost 1.3 share points over this period, slipping to 18.7 percent of expenditures and falling behind magazines.
Steven Fredericks, president and chief executive officer of TNS Media Intelligence, said: “Although total ad spending has turned in a modest year-to-date gain, growth rates over the past six months lag forecast projections by 80-90 basis points.
“Record-setting levels of political advertising, which will also impact fourth-quarter figures, have not been enough to overcome continued weakness within the automotive, retail and travel sectors.”
| Advertising Spending by Media: | |||
| Jan-Sep 2006 vs. Jan-Sep 20051 | |||
| MEDIA | Jan-Sep 2006 (Millions) | Jan-Sep 2005 (Millions) | % CHANGE |
| TELEVISION MEDIA | $47,161.3 | $44,831.0 | 5.20% |
| NETWORK TV 2 | $16,658.8 | $16,043.3 | 3.80% |
| CABLE TV | $12,148.3 | $11,763.4 | 3.30% |
| SPOT TV 3 | $11,955.3 | $11,242.0 | 6.30% |
| SPANISH LANGUAGE TV | $3,222.2 | $2,704.9 | 19.10% |
| SYNDICATION – NATIONAL | $3,176.6 | $3,077.4 | 3.20% |
| NEWSPAPER MEDIA | $20,292.9 | $20,848.8 | -2.70% |
| NEWSPAPERS (LOCAL) | $17,500.2 | $18,166.6 | -3.70% |
| NATIONAL NEWSPAPERS | $2,516.1 | $2,429.3 | 3.60% |
| SPANISH LANGUAGE NEWSP | $276.6 | $252.9 | 9.40% |
| MAGAZINE MEDIA | $21,447.5 | $20,514.9 | 4.50% |
| CONSUMER MAGAZINES | $16,484.6 | $15,627.5 | 5.50% |
| B-TO-B MAGAZINES | $3,188.2 | $3,254.8 | -2.00% |
| SUNDAY MAGAZINES | $1,326.4 | $1,224.3 | 8.30% |
| LOCAL MAGAZINES | $341.6 | $310.8 | 9.90% |
| SPANISH LANGUAGE MAG | $106.7 | $97.4 | 9.60% |
| RADIO MEDIA | $8,091.5 | $8,179.1 | -1.10% |
| LOCAL RADIO 4 | $5,454.4 | $5,538.7 | -1.50% |
| NATIONAL SPOT RADIO | $1,917.9 | $1,908.9 | 0.50% |
| NETWORK RADIO | $719.1 | $731.5 | -1.70% |
| ALL OTHER MEDIA TYPES | |||
| INTERNET 5 | $7,151.7 | $6,066.8 | 17.90% |
| OUTDOOR | $2,828.4 | $2,617.7 | 8.00% |
| FSI’s 6 | $1,386.3 | $1,116.3 | 24.20% |
| TOTAL 7 | $108,359.5 | $104,174.7 | 4.00% |
| Source: TNS Media Intelligence | |||
| 1. Figures are based on the TNS Media Intelligence Stradegy multimedia ad expenditure database across all TNS MI measured media, including: Network TV; Spot TV; Cable TV (44 networks); Syndication TV; Hispanic Network TV; Consumer Magazines (217 publications);,Sunday Magazines (6 publications); Local Magazines (27 publications); Hispanic Magazines (27 publications); Business-to-Business Magazines (407 publications); Local Newspapers (145 publications); National Newspapers (3 publications); Hispanic Newspapers (54 publications); Network Radio; Spot Radio; Local Radio; Internet; and Outdoor. Figures do not include public service announcement (PSA) data. | |||
| 2. Network TV figures include the CW and MyTV networks, both of which launched in Sept 2006. | |||
| 3. Spot TV figures do not include Hispanic Spot TV data. | |||
| 4. Local Radio includes expenditures for 34 markets in the U.S. | |||
| 5. Internet figures do not include paid search advertising. | |||
| 6. FSI data represents distribution costs only. | |||
| 7. The sum of the individual media may differ from the total due to rounding. | |||
In a recent forecast, Universal McCann has said that US advertising expenditure in 2006 will total $285.1 billion, a gain of 5.2% over 2005 (see Modest US Ad Growth Predicted For 2007).