Total advertising expenditure in the US increased by 3% year on year in 2005, reaching $143.3 billion, with adspend in the fourth quarter of the year up by 3% compared to the same period in 2004.
According to new estimates from TNS Media Intelligence, the majority of the 19 media measured by TNS MI experienced growth during 2005, with internet display advertising enjoying the largest gain, up by 13.3% year on year to $8.3 billion.
Cable TV advanced sharply in 2005, up by 11.4% year on year to $15.9 billion, while outdoor saw a rise of 9.8%, reaching $3.5 billion. Consumer magazines also saw good growth, rising by 7.5% to $21.7 billion.
Local newspapers saw the most dollars spent on them at $25.1 billion, up by 1.1% compared to 2004, while network TV was the second leading category with $22.5 billion, a decline of 0.3 percent.
The top 10 advertisers spent $18.6 billion during 2005, a drop of 3.3% compared to 2004. Procter & Gamble regained the top spot with $3.2 billion in spending, down 4.6% on a like-for-like basis against 2004. General Motors held the second position with $3 billion in spending, up 7.1%, while Verizon Communications saw the largest growth rate among the top ten, up 8.5%.
The automotive category continued as the dominant spending category in 2005, while direct response enjoyed the strongest growth in 2005, up 15.1% to $6.1 billion. Additional categories putting in a good performance included financial services, up 8.1% to $8.3 billion, and restaurants, up 5.7% to $4.9 billion.
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| Ad Spending by Media: Full Year 2004 |
| Media |
Full Year 2005 ($ millions) |
Full Year 2005 ($ million) |
% change |
| Newspapers (local) |
25,090.50 |
24,814.40 |
1.1 |
| Network TV |
22,455.20 |
22,523.40 |
-0.3 |
| Consumer Magazines |
21,688.00 |
20,167.20 |
7.5 |
| Cable TV |
15,874.10 |
14,248.80 |
11.4 |
| Spot TV |
15,529.20 |
17,158.70 |
9.5 |
| Internet |
8,322.70 |
7,343.00 |
13.3 |
| Local Radio |
7,364.90 |
7,273.40 |
1.3 |
| B2B Magazines |
4,471.00 |
4,364.60 |
2.4 |
| Syndication – National |
4,222.50 |
3,930.90 |
7.4 |
| Spanish Language Media |
4,219.20 |
3,976.10 |
6.1 |
| Outdoor |
3,528.80 |
3,213.00 |
9.8 |
| National Newspapers |
3,466.70 |
3,303.50 |
4.9 |
| National Spot Radio |
2,604.10 |
2,616.50 |
-0.5 |
| Sunday Magazines |
1,619.50 |
1,497.40 |
8.2 |
| FSI’s |
1,441.50 |
1,391.90 |
3.6 |
| Network Radio |
1,009.90 |
1,027.80 |
-1.7 |
| Local Magazines |
385.5 |
317.7 |
21.3 |
| TOTAL |
143,293.30 |
139,168.30 |
3 |
| Source: TNS Media Intelligence, February 2006 |
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