US Advertising Spend Rises 6.8% In First Half
The US advertising market grew by almost 7% in the first half of 2003, confirming industry views that a recovery is in the offing. Fifteen of the sixteen media categories examined by TNS Media Intelligence/CMR experienced gains with cable television recording the largest percentage increase.
Network television was the only category to post a record a loss but the decline was slight and adspend in the broadcast sector as a whole was up 4.7% to $31.3 billion.
“These first half results are further evidence that the ad recovery is well underway and that 2003 will be a very healthy year for the advertising marketplace,” said Steven Fredericks, president and chief executive of TNS Media Intelligence/CMR.
The latest findings seem to indicate that the advertising market is progressing better than expected. In June, the group said that full-year growth would be in the region of 4.3% (see TNS/CMR Upgrades US 2003 Ad Growth To 4.3%) but this has now been revised to 5%.
Last week, Sir Martin Sorrell, chief executive at WPP, said that the advertising economy was on the upslope of a “bath-shaped recovery” (see Ad Market Begins To ‘Climb Out Of The Bath’, Says WPP). Analysts are confident of significant growth in 2004, a year which features the US presidential elections, the Athens Olympic Games and the European Football Championships in Portugal.
| US Advertising Spend By Medium | |||
| ÂÂ | ÂÂ | ÂÂ | ÂÂ |
| ÂÂ | Jan-Jun 2002 ($m) | Jan-Jun 2003 ($m) | Change |
| Network TV | 10,388 | 10,351 | -0.4% |
| Spot TV | 7,563 | 7,574 | 0.2% |
| Cable TV | 4,895 | 5,711 | 16.7% |
| Syndication – national | 1,414 | 1,638 | 15.8% |
| Spanish language network | 959 | 1,107 | 15.4% |
| Local radio | 3,113 | 3,245 | 4.2% |
| National spot radio | 1,120 | 1,218 | 8.8% |
| Network radio | 468 | 480 | 2.7% |
| TOTAL BROADCAST | 29,919 | 31,324 | 4.7% |
| Consumer magazines | 7,770 | 8,590 | 10.5% |
| B2B magazines | 4,264 | 4,340 | 1.8% |
| Sunday magazines | 616 | 662 | 7.5% |
| Local magazines | 149 | 155 | 3.9% |
| Local newspapers | 9,623 | 10,715 | 11.4% |
| National newspapers | 1,414 | 1,428 | 1.0% |
| TOTAL PRINT | 23,834 | 25,889 | 8.6% |
| Internet | 2,777 | 3,201 | 15.3% |
| Outdoor | 1,191 | 1,254 | 5.3% |
| GRAND TOTAL | 57,722 | 61,669 | 6.8% |
| Source: CMR/TNS Media Intelligence, March 2003 | |||
