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Category: U.S. Advertising Market Grows 4.4% In First Quarter 2005; Internet Advertising Up 8.2% Year Over Year TNS Media Intelligence Reports Smallest Year-Over-Year Gain Since The End of 2003 NEW YORK, NY, June 1, 2005 – Total advertising expenditures for the first quarter of 2005 increased 4.4% to $33.5 billion compared to the same time period in 2004, according to data released today by TNS Media Intelligence (TNS MI), the leading provider of strategic advertising and marketing information. Though this is the smallest gain in advertising spend since the end of 2003, spending continues to increase at a faster rate than the GDP; just as it has in 10 of the last 11 quarters.
Local Magazines led all media categories in percentage growth, rising 26.2% to $104 million. Cable TV registered growth of 18.2% to $3.5 billion, taking market share from broadcast TV. Sunday Magazines grew 14.5% to $398 million (which is a reflection of organic growth and expansion in TNS MI measurement base) and Consumer Magazines increased by 9.5% to $4.7 billion. Internet advertising also continued to rise, posting an 8.2% increase over the previous year to $1.9 billion. By total dollar amount, Local newspapers and Network TV led all media at $5.9 billion and $5.8 billion, respectively.
“It is clear that advertisers were fiscally more cautious in the first quarter of 2005, given mixed economic indicators and wavering consumer confidence,” said Steven Fredericks, president and CEO of TNS Media Intelligence. “Traditional stalwart categories such as Automobile, Banking and Retail Department Stores performed below market average, but those decreases were offset by increased spending by Direct Response and Restaurants,” added Fredericks.
Local and national newspapers, which account for 20% of total ad spend, have recently been faced with circulation declines and advertiser consolidation in key categories. As a result, these media turned in below-average growth, pulling down the total average. Spending for B-to-B Magazines continued to show weakness, and Spot TV and Network Radio were the only two media categories to show declines compared with the same period in 2004.
Ad Spending by Media: First Quarter 2005 vs. First Quarter 2004
| NEWSPAPERS (LOCAL) | $5,869.00 | $5,850.20 | 0.30% | | NETWORK TV | $5,845.10 | $5,632.90 | 3.80% | | CONSUMER MAGAZINES | $4,691.70 | $4,285.20 | 9.50% | | SPOT TV 2 | $3,664.30 | $3,849.10 | -4.80% | | CABLE TV 3 | $3,510.10 | $2,970.00 | 18.20% | | INTERNET | $1,948.10 | $1,800.50 | 8.20% | | LOCAL RADIO 4 | $1,612.70 | $1,572.00 | 2.60% | | B-TO-B MAGAZINES | $1,225.30 | $1,224.60 | 0.10% | | SYNDICATION - NATIONAL | $987.60 | $947.80 | 4.20% | | HISPANIC MEDIA 5 | $915.60 | $865.30 | 5.80% | | NATIONAL NEWSPAPERS | $801.80 | $783.60 | 2.30% | | OUTDOOR | $725.90 | $705.20 | 2.90% | | NATIONAL SPOT RADIO | $539.40 | $515.10 | 4.70% | | SUNDAY MAGAZINES | $398.30 | $347.80 | 14.50% | | FSI's 6 | $396.80 | $392.70 | 1.00% | | NETWORK RADIO | $224.80 | $232.20 | -3.20% | | LOCAL MAGAZINES | $103.70 | $82.20 | 26.20% | | TOTAL7 | $33,460.30 | $32,056.40 | 4.40% | | Source: TNS Media Intelligence
1 Figures are based on the TNS Media Intelligence Stradegy2 multimedia ad expenditure database across all TNSMI measured media, including: Network TV, Spot TV, Cable TV, Syndication, Hispanic Network TV, Consumer Magazines, Sunday Magazines, Local Magazines (31 publications), Hispanic Magazines, Newspapers (local and national), Hispanic Newspapers, Network Radio, Spot Radio, Local Radio, Internet and Outdoor. Figures do not contain public service announcement (PSA) data.
2 Spot TV figures do not include Hispanic Spot TV data.
3 Cable TV figures based on 45 networks.
4 Local Radio includes expenditures for 35 markets in the U.S provided by Miller Kaplan.
5 Hispanic Media includes expenditures from Hispanic TV (Univision, Telemundo, Telefutura and Galavision), Hispanic Spot TV, Hispanic Magazines and Hispanic Newspapers.
6 FSI data represents distribution costs only.
7 The sum of the individual media may differ from the total due to rounding.
Ad Spending by Category
Advertising spend in the top ten categories increased 4.9% to $14.3 billion in the first quarter compared to the same time period in 2004. By dollar amount, Domestic Auto led all categories at $2.1 billion, closely followed by Non-domestic Auto at $2.0 billion. Direct Response led all categories in growth, rising 19.3% to $1.5 billion, followed by Media and Marketing with 12.6% growth to $1.1 billion, and Restaurants with 11.9% growth to $1.1 billion. Spending by the top ten categories for the first quarter registered $14.3 billion, accounting for 42.6% of total ad spend.
Top Ten Ad Categories: First Quarter 2005 vs. First Quarter 2004
8
| | DOMESTIC AUTO: FACTORY AND DEALER | $2,082.50 | $1,928.40 | 8.00% | | NON DOMESTIC AUTO: FACTORY AND DEALER | $1,984.40 | $2,089.80 | -5.00% | | TELECOMMUNICATIONS SERVICES | $1,736.40 | $1,654.30 | 5.00% | | DIRECT RESPONSE | $1,478.40 | $1,239.50 | 19.30% | | BANKING AND INVESTMENT SERVICES | $1,380.60 | $1,343.90 | 2.70% | | TRANSPORTATION AND TOURISM | $1,277.10 | $1,258.60 | 1.50% | | RESTAURANTS | $1,128.10 | $1,008.60 | 11.90% | | RETAIL CLOTHING AND DEPARTMENT STORES | $1,070.80 | $1,051.20 | 1.90% | | RETAIL HOME FURNISHINGS AND APPLIANCES | $1,063.50 | $1,083.70 | -1.90% | | MEDIA AND MARKETING SERVICES | $1,054.10 | $936.40 | 12.60% | | TOTAL 9 | $14,255.90 | $13,594.40 | 4.90% | | Source: TNS Media Intelligence
8 Figures do not contain National Spot Radio, Outdoor, FSI, PSA activity or house ads.
9 The sum of the individual categories may differ from the total due to rounding
About TNS Media Intelligence
TNS Media Intelligence in the U.S. is the leading provider of strategic advertising and marketing information – across media, brand, industry and market. The company’s tracking technologies collect occurrence and expenditure data on more than 2.1 million brands spanning 20 media. The U.S. headquarters are located in New York City with sales locations in major markets across the country.
For further information, including this and prior press releases, please visit http://www.tns-mi.com.
About TNS
TNS is a market information group. We are the world’s largest custom research company and a leading provider of social and political polling. We are also a major supplier of consumer panel, TV audience measurement and media intelligence services.
TNS operates a global network spanning 70 countries and employs over 13,000 people. We provide market information and measurement, together with insights and analysis, to local and multinational organisations.
We combine our specialist sector knowledge with expertise in the areas of new product development, motivational research, brand and advertising research and stakeholder management to bring our clients up-to-the minute, internationally consistent information.
We think differently to help our clients build competitive advantage, making TNS the sixth sense of business.
www.tns-global.com
Source: Wired News
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